Worker, Homeownership, and Business Assistance Act of 2009
The First Time Homebuyer's Credit has been extended through May 1, 2010. The adjusted gross income phaseout of the credit has been increased to $125k individual/$250k married filing joint with complete phaseout at $145k individual/$290k married filing joint.
Existing Homeowners may also quality for a credit of $6,500. They must have owned a principal residence for five consecutive years during the eight year period prior to purchase.
Taxpayers must be at least 18 years of age and can not be claimed as a dependent. Related parties now include in-laws. No credit is allowed on homes with a purchase price exceeding $800,000. Closing statements must be attached to the tax return for any home purchased during 2009.
The credit is extended until April 30, 2011 for military personnel on official extended duty outside the United States.
Penalties for failing to file an S Corporation return on time have been increased to $195 per shareholder per month for a maximum of 12 months.
Additional Changes
2009 income tax refunds can now be used to automatically purchase Series I Savings Bonds.
Be sure to check www.energystar.gov when buying property eligible for the Energy Credit. The word is that the property must be listed on this site or you must receive a certificate from the manufacturer.
The Energy Credit is a 30% credit with an overall $1,500 cap and has been extended through 2010.
Arizona Military Family Relief Fund Tax Credit
This is a fund that has been set up to help families of Arizona military who have been killed in action. Families can apply for assistance to ease financial hardships. Donations to the fund are eligible for an Arizona tax credit ($200/single and $400/married filing joint.) Donations are limited. A barometer and additional information can be found on the Fund's website at www.azdvs.gov.
Arizona’s New 529 College Savings Credit
In addition to providing tax free earnings for education, investments in a 529 college savings plan for your children are now eligible for a subtraction from Arizona gross income. Only current year contributions are eligible. The maximum subtraction is $750 for single filers and $1,500 for married filing joint. The current law is good for tax years beginning in 2008 through 2012. Please note that the Arizona plan invests in CDs thus does not experience the loss in principal other plans have experienced. The Arizona plan can be found at www.collegesavings.com.
Standard Mileage Rate
For 2010, the standard mileage rate is 50 cents per mile for business miles.
Social Security Wage Limits for 2010
- $14,160 for people under full retirement age
- $37,680 in the year you reach full retirement age
- No limit on earnings beginning the month you reach full retirement age
Contracting Tax Factors
The following rates are factored tax rates for Contracting in the various locations. The rates are factored by taking 65% of the existing rate thus allowing for the 35% standard deduction.
- Tucson – 5.265%
- Marana – 6.565%
- Oro Valley – 6.565%
- Unincorporated Pima County – 3.965%
- Unincorporated Pinal County – 4.355%
