First Time Home Buyer Credit
The new first time home buyer credit pertains to homes purchased after January 1, 2009 through November 30, 2009. The new credit is a refundable credit for up to 10% of the purchase price, not to exceed $8,000.00. The American Recovery and Reinvestment Act of 2009 eliminated the repayment obligation and removed the prohibition on financing by mortgage revenue bonds. The credit phases out for taxpayers with adjusted gross income of $75,000.00 ($150,000.00 in the case of married couples filing a joint return).
American Opportunity Education Tax Credit
For tax years 2009 and 2010, a new credit of up to $2,500.00 for the cost of tuition and related expenses paid during the tax year will be available to certain taxpayers. Under the new credit, qualifying taxpayers will receive a tax credit based on one hundred percent (100%) of the first $2,000.00 and twenty-five percent (25%) of the next $2,000.00 of tuition and related expenses (including textbooks) paid during the tax year. Forty percent (40%) of the credit is refundable. This credit is subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000.00 ($160,000.00 for married couples filing a joint return). This credit modifies the existing Hope Credit.
Section 529 Education Plans
Section 529 Education Plans are tax-advantaged savings plans that cover all qualified education expenses, including: tuition, room & board, mandatory fees, and books. The American Recovery and Reinvestment Act of 2009 provides that computers and computer technology will now be included as qualified education expenses.
Standard Mileage Rates for 2009
For 2009, the standard mileage rate for the cost of operating your vehicle for the following uses is:
Business use - $0.55 per mile
Medical and deductible move-related - $0.24 per mile
Charitable purposes - $0.14 per mile
If you would like more information about Pennsylvania Elder Law, Business Law or Tax Law, please contact an experienced Pennsylvania Attorney who is also a Certified Public Accountant (CPA) via email or phone us at (724) 216.6551 at our Greensburg, Pennsylvania office.
The Iezzi Law Office serves clients in southwestern Pennsylvania, including Greensburg, Pittsburgh, Delmont, Monroeville, Latrobe, Irwin, Uniontown, Connellsville, Indiana, Somerset, including Westmoreland County, Allegheny County, Fayette County, Indiana County, and Somerset County.
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IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
