AARP Tax-Aide Tax Preparation SW Washington, Tax Updates

New Credits for 2009

Home Energy Efficiency Improvements
This credit provides for a uniform credit of 30 percent of the cost of qualifying improvements up to $1,500. A similarly named credit existed in previous years but this year’s version is more generous. The new provisions were part of the American Recovery and Reinvestment Act of 2009. Additional information can be found here

Making Work Pay Tax Credit
This credit –– available for tax years 2009 and 2010 -- equals 6.2 percent of a taxpayer’s earned income subject to certain limitations. It is being implemented by changing the employer withholding tables. The taxpayer does not have to do anything to benefit from this credit, unless they wish to change their withholding allowances to have more tax withheld.

First-Time Homebuyer Credit
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. More information is available here

Education Credits
The Hope Credit which is often used by students or their families is expanded in value and duration. More information is available here

New Vehicle Taxes
Deducting state sales and excise taxes as an itemized deduction has been available for the last few years. Now this deduction is available to people who do not itemize on their tax returns. More information is available here

Property Taxes Deductible for Tax year 2009
Real Estate taxes (Property taxes) continue to be deductible for tax year 2009 (with limitations). This is true even if you do not itemize deductions on your tax return. You will need to bring evidence of paid property taxes in the form of a cancelled check or a property tax statement.

Advantages of E-Filing

It's the fastest, easiest, most convenient and safest way to file your income tax return, FREE!

Specific advantages include the following:

Refunds can be received in as little as 8 days using electronic direct deposits

Payments can be deferred until April 15 and optionally electronically withdrawn from your account

Receipt of the return is acknowledged to Tax-Aide by the IRS & Oregon DOR

Mathematical errors are virtually eliminated

No postage required; unlike having to mail a paper return

E-Filing is a FREE service of AARP Tax-Aide

Taxpayers receive a printed copy of their return for their records

With E-filing and electronic deposit of refunds or automatic electronic payment of taxes due there is no concern over mail being lost or stolen

Note: There are some limited circumstances that still require a traditional paper return to be filed. If your return fits those circumstances we will still prepare it on the computer and then print out a copy for you to mail to the IRS (and Oregon if required).