Nobody can stop the 15th of April from coming and before you finalize your tax return sheets, here are a few pointers to keep in mind – covering this year’s return and in the coming years. If you want to avoid IRS wage garnishment, make sure you pay all your taxes on time.
According to Robert Fishbein, Prudential Financial’s vice president and corporate counsel, it’s always beneficial to contemplate on your income taxes based on two perspectives. One is to find out how you can lessen the income tax liability on your tax return, and two is to learn about the kinds of tax planning that you should carry out to achieve great returns for 2010 and so on.
2009 Returns – Best Tax Tips
Though there are several aspects to deliberate for your tax year 2009, the following are a few things that you might fail to notice:
If you are looking forward in buying your first residential property, you may be qualified for the first-time homebuyer tax credit benefit of 10% of the property price for your new house up to $8,000. Ensure you have all the necessary documentation to act as evidence for this claim, such as Form HUD-1 Settlement Statement (PDF), because the IRS will verify if your claims are justifiable. In addition, for the reason that there are record requirements for such credit, you will need to file a paper return yourself, since electronic filing for this claim is not accepted.
Watch out for the possible 30% income tax credit for 2009 for the cost of an energy-efficient upgrade or improvement to your house of up to $1,500, (combined amount for 2009 and 2010). This credit is applicable to your account if you’ve added or installed insulation, energy-efficient heating and cooling mechanisms, or energy-efficient windows. The IRS has stipulated guidelines on what devices meet the criteria as “energy-efficient” for credit purposes. It’s vital to confirm with the manufacturer if their products qualify for the credit. You should keep the purchase receipt for documentation.
Both the energy credit and the first-time homebuyer credit can lower your tax liability. You should not overlook these noteworthy benefits, which are within your reach when thinking about your income tax return for 2009.
It’s important to remember as well that you can complete an IRA contribution for the tax year 2009 until the tax return’s due date (April 15, 2010). Thus, it is never too late to make an IRA contribution for 2009. You can also start making contributions for 2010. Remember that the best way to secure a comfortable retirement is to contribute funds as much as you can every