Thursday, October 8, 2009

Recovery Act Tax Benefits for Business


Tax News from The Small Business Advocate, Published by the Small Business Administration:

The IRS has made information videos about Recovery Act tax credits available on YouTube (www.youtube.com/irsvideos), as well as podcasts on iTunes. The IRS.gov official web site also contains links and complete information about Recovery Act tax provisions at http://www.irs.gov/recovery. The videos are available in English, Spanish, and American Sign Language versions.

Topics covered include:

  • The first-time homebuyer credit which provides a maximum $8,000 tax credit to people who meet eligibility requirements and complete the purchase of their homes before December 1;
  • The American Oportunity Credit expands education tax credits to $2,500 for tuition and a change in 529 plans allows for the purchase of computers for college;
  • The energy credit expands to a maximum of $1,500 for certain energy-saving upgrades;
  • A new deduction for the sales or excises taxes paid on the purchase price of new vehicles; and
  • The Making Work Pay tax credit, which many American workers received in April through reduced tax withholding in their paychecks. The credit is $400 for single taxpayers who meet certain income guidelines. (However, some people, such as married spouses, workers with two jobs, pensioners, some Social Security recipients and dependents, should check their tax withholding to ensure they are having too little withheld.

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