Courtest of WebCPA

MILLIONS MAY OWE UNDER MAKING WORK PAY

Washington, D.C. – The Making Work Pay Credit could lead to more than 15.4 million people owing additional taxes, according to a new report. The credit is advanced to taxpayers by employers through reduced withholding, resulting in an increase in take-home pay.

A Treasury Inspector General for Tax Administration report said that the implementation of the tax credit creates the possibility that millions of taxpayers may be advanced more of the credit through reduced withholding than they are entitled to receive. When filing their returns for 2009 and 2010, such taxpayers may ultimately owe additional taxes. Some also may be subject to estimated tax penalties.

For more information on how this may apply to you, do not hesitate to contact us.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Courtesy of NYS:

The Penalty and Interest Discount (PAID) program gives taxpayers with
older unpaid bills the chance to save up to 80% of the penalty and
interest they owe.

You can save:
- 80% of accrued penalty and interest on unpaid bills issued on or
before
December 31, 2003
- 50% of accrued penalty and interest on unpaid bills issued after
December 31, 2003 and on or before December 31, 2006.

To take advantage of the program’s savings, you must make all payments
by
March 15, 2010. If you don’t pay in full by that date:
- your opportunity for these savings will be lost forever
- any unpaid tax debts will continue to accrue interest at the full
statutory rate.

We’re mailing invitations to taxpayers eligible for PAID this month.
Eligible taxpayers who don’t receive a notice because we can’t reach
them
through the mail can still participate. See our Web site to learn how to

get PAID up.
http://www.tax.state.ny.us/nyshome/paid.htm

To change or unsubscribe to this list, go to
http://www8.nystax.gov/SUBS/subHome.jsp and choose the unsubscribe
option. For a three-month archive of prior postings, go to Recent
Additions
(http://www.tax.state.ny.us/nyshome/recent_additions/).

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Tax credits are now offered for many first time homebuyers of $8000 and many repeat homebuyers of $6500 through “The Worker, Homeownership, and Business Assistance Act of 2009.” The qualifying homebuyer must be over the age of 18 and cannot be claimed as a dependent on someone else’s tax return. Homes with a purchase price over $800,000 do not qualify. Types of homes that may qualify include a new home or a resold home, and also a new home construction on a previously owned lot. Limits also apply to how much of a deduction can be claimed based on the modified adjusted gross income (MAGI) of the taxpayer and spouse, if married. In addition, home purchases from certain family members and relatives cannot qualify for the tax credits. Home means a house or for us New York income tax filers a co-op or condo.

To be eligible for the $8000 tax credit for first time homebuyers, the new home must be purchased from January 1, 2009 to April 30, 2010. If there is a binding contract signed by April 30, 2010 and the home is purchased by June 30, 2010, the home purchase can also qualify. The taxpayer must reside in the new home for three years (36 months) or else the tax credit must be paid back to the IRS. To be considered a first time homebuyer, the individual must be purchasing a primary residence in the United States, and the individual and spouse, if married must not have purchased a primary residence in the past three years. The taxpayer can receive a tax credit of up to 10% of the home’s purchase price up to a maximum of $8000.

The repeat homebuyer credit of up to $6500 applies to qualified existing homebuyers who purchase a home to be used as a principal residence from November 6, 2009 to April 30, 2010, or who enter into a binding contract to buy a home by April 30, 2010, and purchase the home by June 30, 2010.  A repeat homebuyer is one who has lived in a home for 5 years (60 months) prior to making a new home purchase. The repeat homebuyer must live in the new home for at least 36 months or else the tax credit must be paid back to the IRS. The taxpayer can receive a tax credit of up to 10% of the home’s purchase price up to a maximum of $6500.

The types of purchased homes that can qualify as a primary residence for either tax credit include condos, single-family detached homes, co-ops, or town homes.  If you are purchasing a home in 2009 or prior to June 30, 2010, please contact MEDOWS CPA, PLLC a New York City Certified Public Accounting firm focusing on income taxes for individuals, self-employed, freelancers and small business owners. We can assist you in determining whether your new home purchase qualifies you for either the first time or repeat homebuyers tax credits through “The Worker, Homeownership, and Business Assistance Act of 2009.” We can also assist you with preparing your taxes to ensure that you properly receive all the credits you are entitled to under this legislation. If you plan to purchase a home in the near future, please consult with us for guidance as to what homes may qualify for a tax credit prior to making your purchase. In this way, you can be more knowledgeable as to what homes qualify you for tax credits prior to making your purchase. Once consulting with us, you can finalize your decision about which home to buy, taking any potential tax credit into account. If you can possibly qualify for one of these tax advantages are looking to buy a new home, this is an opportunity to seriously consider while it is available. If you purchased a home prior to January 1, 2009, please also contact MEDOWS CPA, PLLC, a NYC CPA firm and we can help you determine if you are eligible for any other types of tax credits that were available to homebuyers at the time of your purchase.

About us: MEDOWS CPA, PLLC is a boutique New York City Certified Public Accounting Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.