- Must have owned your prior home for 5 years (Be ready to prove it)
- Must buy a new home and live there as a personal residence for 3 years. (Sell it too soon and you will be refunding the money)
- The credit is for 10% of the purchase price of the home, for a maximum of $6,500 (married filing joint).
- The credit is for those with an adjusted gross income below $250,000 if married/125,000 if single.
- The credit is reported on form 5405
Below are the details on the $6,500 homebuyer credit for existing homeowners.
|
The IRS has published the following general schedule so that you can know when to expect a refund payment. Payments are made on Fridays, and it is generally the second friday after your return is received. Note that these are just general guidelines and they do not guarantee your payment by any date. Also note that paper checks are processed later and then you have the mail lag as well.
The state of NC does not provide any schedule like this, and with the budget problems we faced last year I wouldn't expect a refund by them to be processed too quickly.
Complete Chart
If there is a problem or delay, you can check on your refund at this website or call 1-800-829-1954 or 1-800-829-4477.
Source
The state of NC does not provide any schedule like this, and with the budget problems we faced last year I wouldn't expect a refund by them to be processed too quickly.
| Transmitted & Accepted (by 11:00 am) between... | Direct Deposit Sent | Paper Check Mailed |
|---|---|---|
| Jan 15 and Jan 21, 2010 | Jan 29, 2010 | Feb 5, 2010 |
| Jan 21 and Jan 28, 2010 | Feb 5, 2010 | Feb 12, 2010 |
| Jan 28 and Feb 4, 2010 | Feb 12, 2010 | Feb 19, 2010 |
| Feb 4 and Feb 11, 2010 | Feb 19, 2010 | Feb 26, 2010 |
| Feb 11 and Feb 18, 2010 | Feb 26, 2010 | Mar 5, 2010 |
| Feb 18 and Feb 25, 2010 | Mar 5, 2010 | Mar 12, 2010 |
| Feb 25 and Mar 4, 2010 | Mar 12, 2010 | Mar 19, 2010 |
| Mar 4 and Mar 11, 2010 | Mar 19, 2010 | Mar 26, 2010 |
| Mar 11 and Mar 18, 2010 | Mar 26, 2010 | Apr 2, 2010 |
| Mar 18 and Mar 25, 2010 | Apr 2, 2010 | Apr 9, 2010 |
| Mar 25 and Apr 1, 2010 | Apr 9, 2010 | Apr 16, 2010 |
| Apr 1 and Apr 8, 2010 | Apr 16, 2010 | Apr 23, 2010 |
| Apr 8 and Apr 15, 2010 | Apr 23, 2010 | Apr 30, 2010 |
Complete Chart
If there is a problem or delay, you can check on your refund at this website or call 1-800-829-1954 or 1-800-829-4477.
Source
|
The NC Department of Revenue has released a new withholding requirement for companies that use contractors that have an individual tax ID number (rather than a social security number) who earn more than $1,500. Contractors with ITIN's must have 4% of their pay withheld and then reported on their 1099 as NC withholding. For more information, see their website here.
|
Congress is looking to pass a bill that will allow a deduction of a 2010 charity donation on your 2009 tax return. The contribution has to go towards the Haiti relief efforts. You can't take the deduction in both years, but it gives you the option of taking the deduction in the year that benefits you the most. For more info, you can visit this site.
|
The IRS gives you the option to take your refund as an I bond this year if you feel inclined. You just need to tell your tax preparer or use form 8888 to request that all or part of your refund be issued as savings bonds rather than a direct deposit to your account or check sent to you. While I have nothing against I bonds, cash is king in my book, especially in an economy where cash flow is so tight.
Source
Source
|
For ministers who are considering opting out of the social security system, here are some timing guidelines that you need to consider.
Article
Article
|
Here is a good article on the rules waiters and other tipped employees face on their income.
|
The expiration of the estate tax has been met with much fanfare, but it doesn't come without it's share of complications as well. Such is the case with any changes I guess.
Some people will need to look over their wills to make sure that the amount that passes to their spouse is not tied to the estate tax exemption. With no estate tax exemption this year, you could be leaving your spouse empty handed if something happens to you. This is a planning tool to avoid estate taxes that may end up backfiring on a few people.
Another issue is the bumped up basis in an asset that you inherit. This is a huge timesaver for inherited property, becuase it is much easier to look up the price of a stock on a date of death than to go back through years of purchase records and reinvestment activity to determine a stocks original basis. Well with the expiration of the estate tax, the bumped up basis is also being threatened. What is a boon to a few (who actually faced an estate tax), is going to become a headache to the multitude (who received the benefit of the bumped up basis they inherit).
And since most see this is a temporary status until they agree to the terms of a new estate tax (or just let the current terms expire next year), it will create a year of exceptions to the otherwise well known rules.
Here is an article that explains the pros and cons of these changes well, as well as who is likely to benefit and who will pay more under the new law.
Wikipedia offers some insight quoted below on the ability to still receive some stepped up basis even under this new law (up to 1.3 million per estate), but it is not as cut and dry as the older rules.
"If the law does not change, for 2010 property transferred from decedents will be treated as if it is transferred by gift. This means the basis of the property for calculating capital gains when the recipient eventually sells the property will be the same basis as in the hands of the decedent. This is generally called carryover basis. However most recipients will effectively get the same result they would receive under present law, because section 1022 allows the executor of an estate to allocate up to 1.3 million in basis for singles and 3 million for surviving spouses to the property of the estate. This will effectively give most recipients a tax basis in the property equal to the full market value ie. "step up basis". See 26 U.S.C. § 1022."
Source
Some people will need to look over their wills to make sure that the amount that passes to their spouse is not tied to the estate tax exemption. With no estate tax exemption this year, you could be leaving your spouse empty handed if something happens to you. This is a planning tool to avoid estate taxes that may end up backfiring on a few people.
Another issue is the bumped up basis in an asset that you inherit. This is a huge timesaver for inherited property, becuase it is much easier to look up the price of a stock on a date of death than to go back through years of purchase records and reinvestment activity to determine a stocks original basis. Well with the expiration of the estate tax, the bumped up basis is also being threatened. What is a boon to a few (who actually faced an estate tax), is going to become a headache to the multitude (who received the benefit of the bumped up basis they inherit).
And since most see this is a temporary status until they agree to the terms of a new estate tax (or just let the current terms expire next year), it will create a year of exceptions to the otherwise well known rules.
Here is an article that explains the pros and cons of these changes well, as well as who is likely to benefit and who will pay more under the new law.
Wikipedia offers some insight quoted below on the ability to still receive some stepped up basis even under this new law (up to 1.3 million per estate), but it is not as cut and dry as the older rules.
"If the law does not change, for 2010 property transferred from decedents will be treated as if it is transferred by gift. This means the basis of the property for calculating capital gains when the recipient eventually sells the property will be the same basis as in the hands of the decedent. This is generally called carryover basis. However most recipients will effectively get the same result they would receive under present law, because section 1022 allows the executor of an estate to allocate up to 1.3 million in basis for singles and 3 million for surviving spouses to the property of the estate. This will effectively give most recipients a tax basis in the property equal to the full market value ie. "step up basis". See 26 U.S.C. § 1022."
Source
|
If you are an officer to an S Corporation, you are going to have to jump through some hoops to properly report your officer's health insurance premiums. The IRS has ruled that in order to get the deduction on your form 1040 like most business owners (self employed), you have to include the premiums as taxable income on your W-2, and then deduct it on your corporate return as wages expense, and then deduct it again on your personal return. So two minuses and one plus equals one deduction. The IRS isn't known for making things simple, but they make the rules.
Source
Source
|