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Tax Credit for Energy Efficient Home Improvements |
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Tax credit returns for 2009 and 2010 after (mostly) lapsing for one year.
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Enhanced Standard Deduction |
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Beginning in 2008, the standard deduction is enhanced for certain real estate taxes and other amounts, thus complicating the decision to itemized deductions. Up to $500 ($1,000 married filing jointly) of taxes on one's principal residence is added to the standard deduction otherwise determined, for example. |
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The economic stimulus payments that were automatically generated from the 2007 tax return data by the IRS during 2008 were actually just a non-refundable advance on a 2008 tax credit. In other words, if you did not receive all of the payment your 2008 facts would produce, the shortage will be computed on the 2008 return and treated as a payment of 2008 tax.
Therefore, we need to know the amount of any stimulus payment received in order to complete the 2008 return. Any amount withheld due to child support, student loan, back taxes or other amounts IRS thought were due is deemed to have been received.
Withholding during 2009 was reduced as a stimulus, and tax for most will be reduced on 2009 returns via a credit up to $400 ($800 joint). For most, the reduced withholding will offset the credit, leaving the net refund or balance due roughly where it would have been without the withholding adjustment and credit. |
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