Last minute reminder

IRS reminds taxpayers to make use of recent tax law changes before December 31st [Fact Sheet 2008-26]:

Mike Habib, EA

With the end of tax year 2008 just weeks away, IRS has issued a number of tax tips that taxpayers should consider.

Among the tips are the following–first-time homebuyers (those who have not owned a home in the three years prior to a purchase) should be aware that a new tax credit applies to primary home purchases made between Apr. 9, 2008, and June 30, 2009; there is an additional standard deduction for taxpayers who do not itemize their deductions, but pay real estate taxes, and this is an amount equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers: it may be possible to deduct qualified tuition and required enrollment fees up to $4,000 that a taxpayer pays for himself or herself, a spouse or a dependent; and an educator expense deduction worth up to $250 allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom.

The IRS fact sheet also covers a recovery rebate credit, new rules for “cash” charitable contributions, the earned income tax credit, recordkeeping and other items.

It can be found at https://www.irs.gov/newsroom/article/0,,id=201142,00.html

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