Special reminders when submitting Tax information
Tax Information Reminders
A few special items to remember when you send in your tax information
Car purchase:
If you purchased a new car in 2009 the sales taxes paid are a tax deduction in 2009, REGARDLESS of whether or not you are paying AMT tax. AMT taxpayers do not normally get to deduct state taxes, real estate taxes, and personal property taxes. Not so in 2009, you get to deduct the state sales tax. BUT, we must have the year, make, model, sales tax paid, and purchase price of the vehicle to qualify and properly complete the form.
Energy credits:
If you purchased a door (garage or other), windows, insulation, hot water heaters, home heat units, or air conditioners and they are Energy Star rated you may qualify for a tax credit. Not a deduction a credit! Please make sure the vendor you purchased the asset from has produced for you the energy star credit worksheet. It will have the purchase price, the description and product ID, and the tax credit program. If you do not have this, but believe it qualifies, provide us with the invoice of the product purchase.
Schedule M:
This schedule applies to the Making Work Pay provisions passed earlier in 2009. Most taxpayers saw the effect of these provisions in lower withholding taxes and therefore higher take-home pay. If you made over $150,000 either singly or as a joint filer you may have to repay some of these lower withholding taxes. Dependents do not qualify for the credit and if you are drawing social security benefits you have already received the credit. If you hold multiple jobs, you may need to adjust your withholding on Form W4 with your employer to make sure you aren't doubling up on the withholding allowance reduction.
Estimates:
Double check that the actual amount of the estimate you paid is the same as may have been recommended or computed thru the estimate process.
Stock sales:
As you review your Form 1099 make sure the brokerage statement has stock sale basis so the actual gain or loss is computed.
Charitable contributions:
Did you make direct charitable contributions from your IRA or pension to a charity? Make sure you have not doubled up on your charitable cash contributions with these direct payments and include all of your form 1099R's with your information. Did you have charitable contributions withheld from your paycheck? Make sure to include these in your schedule.
Long term care insurance:
If you are making payment for long term care insurance you may be able to deduct them as an itemized deduction so include them in your tax information packet.
IRA and Retirement withdrawals:
It's easy to confuse rollovers and distributions from retirement accounts. Make sure you send all of your 1099R forms to us so we can make sure we've accounted for rollovers and withdrawals properly.
Tuition payments:
If you've taken money from a 529 plan to pay for tuition make sure you send us the Form 1099Q and note on the form that the money was used for qualified educational expenses. Likewise, include the Form 1099T for payments made for tuition. Although most higher income taxpayers are not able to use the tuition credits if your children have a federal income tax liability they may be able to. Include it all and we'll try to make the most of it.
Talk to you soon,
Bill
R. William E. Kruse III
Hauk Kruse and Associates, LLC
(314) 993.4285
