JK Harris and Company, Creating Lifetime Clients

Tax season is here, as you probably already know by the arrival of W-2s or 1099s at your home or office. It is that time of year to gather all of your documents and prepare for filing your state and/or federal returns. While many of you may be dreading this annual event, there have been some recent changes, which might improve your outlook for your tax return this year.

Make sure you take advantage of the new recovery tax breaks made available in the American Recovery and Reinvestment Act of 2009. The IRS recently revised Publication 17, Your Federal Income Tax, which details some of the new tax saving opportunities. All taxpayers should look into: the Making Work Pay credit, the American Opportunity credit for parents and college students, energy credits available to certain homeowners who “went green” last year, the First Time Homebuyer Credit, sales or excise tax deduction for new car buyers and the expanded child tax credit and Earned Income Tax Credit for low and moderate income workers. Although the First Time Homebuyer credit was well publicized, there are other credits and deductions available you might not be aware of.

The IRS recently listed these five facts about Publication 17 and how it will help you prepare your income taxes:

1. The online version of Publication 17 contains electronic links that make finding your answer simple. Both the downloadable PDF and online 2009 Publication 17 have more than 6,000 hyperlinks.

2. Publication 17 features details on recent tax law changes and legislation that can help you save money at tax time. You’ll find lots of helpful information about the American Recovery and Reinvestment Act of 2009, including the Making Work Pay Credit and the First-time Homebuyer Credit.

3. This publication is packed with basic tax-filing information and tips on what income to report and how to report it. Publication 17 also includes information on figuring capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions, and using IRAs to save for retirement.

4. Publication 17 is also available in Spanish.

5. You can get a hard copy of Publication 17 for free. To get a copy, check out IRS Publication 17 at www.irs.gov/publications/p17/index or call 800-TAX-FORM (800-829-3676).

Posted by JK Harris