Welcome to Our Tax Tips Newsletter:

Continuing our effort to provide you with valuable, practical tax information, we will periodically update this page with useful income tax tips and income tax advice from the best sources -- information on issues that you commonly deal with. Be sure to check our newletter from time to time to stay on top on of the latest and most effective tax strategies.

TaxEdge will provide income tax tips that will help you save money when it’s time to file your tax returns. It’s a good idea to use a well planned strategy so that you aren’t surprised in April. Using TaxEdge Income Tax Preparation Software and keeping good records could mean the difference between paying a large chunk of money in April and receiving a big refund check. Use our income tax tips as part of your ongoing preparation.

Senate and House conferees have agreed on the final provisions of The American Recovery and Reinvestment Act of 2009, the major "economic stimulus" measure of the new Obama administration.

Low- and middle-income wage earners; people receiving unemployment benefits; prospective new car and home buyers; and families or individuals with college expenses may all benefit from the changes affecting individuals. In addition, the stimulus legislation provides another temporary "patch" that will keep millions of taxpayers out of the reach of the alternative minimum tax (AMT) for another year.

The provision that will affect the greatest number of people is a "Making Work Pay" tax credit for the 2009 and 2010 tax years. The credit will be a maximum of $400 for single filers or $800 for joint filers. The credit begins to phase out at adjusted gross incomes of $75,000 for single filers and $150,000 for joint filers. The credit decreases to zero when adjusted gross income hits $95,000 for single filers; $190,000 for joint filers.

Recipients of Social Security, Railroad Retirement and Veteran's Administration benefits will get a minimum credit of $250, even if they have little or no earned income to qualify for the credit otherwise.

While spending is the largest component of the stimulus plan, there are some tax provisions--which affect individuals, businesses, environment and government--aimed at increasing spending, employment, education and clean energy. For more information on these tax provisions, see our story on the new legislation.

Income Tax Tips from the 2010 Tax Guide

Exemptions and the Dependency Test
Certain rules must be followed in order to claim a tax benefit for dependents.   To learn who qualifies, please read Exemptions and the Dependency Test.

Deductible Moving Expenses
If your move was job-related, you may be able to deduct the costs you incurred.   For more on this topic, please review Deductible Moving Expenses.

Individual Retirement Accounts (IRAs)
It may be too late to make more money in 2008, but you can still save for retirement before you pay 2008 taxes.   For more on this subject, please review Individual Retirement Accounts (IRAs).

The Child Tax Credit
These valuable credits could have a huge impact on your final tax bill.   To learn more about the requirements for these credits, please read The Child Tax Credit.

Tax News

U.S. Banks Need "Hundreds of Billions of Dollars" of Extra Capital: CBO
While billions have been used to unlock frozen credit markets over the months, the continuing existence of many bad mortgages still weighs heavily on lending patterns.    For further details, please read U.S. Banks Need "Hundreds of Billions of Dollars" of Extra Capital: CBO.

Senate Finance Approves "Stimulus" Package with AMT Patch
Recently approved by a party-line vote in the House of Representatives, the massive economic stimulus bill heads to the Senate where changes are already being made.    To find out more, please read Senate Finance Approves "Stimulus" Package with AMT Patch.

White House Stands Firm on $500 Tax Credit in Economic "Stimulus" Package
Advertised by the Obama administration as a tax cut, the $500 refundable tax credit for lower income workers, offering $10 a week in additional take-home pay through changes in withholding, is a non-negotiable part of the "stimulus" package being considered by Congress, says the White House.    For more information, please read White House Stands Firm on $500 Tax Credit in Economic "Stimulus" Package.

Charitable Mileage Reimbursement May Rise in "Stimulus" Bill
For the first time since 1984, the reimbursement for charitable miles driven could be adjusted in the economic stimulus package being debated in Congress.    For further details, please read Charitable Mileage Reimbursement May Rise in "Stimulus" Bill.