Stacy’s Tax Tips
A few readers have asked about the earned income credit, so here is a short lesson: If you have no children you will receive a credit of $457 if you have earned income and adjusted gross income of under $13,440 ($18,440 if married filing jointly) If you have children, those limits go up. Keep in mind that investment income (interest and dividends) must be under $3,100 to qualify. Ask your accountant to ensure you receive this credit if you qualify.
Those readers who have lost their jobs should ensure that they keep receipts for job hunting expenses which are deductible. Also keep in mind that unemployment as well as any severance pay is taxable.
Did you purchase a new car in 2009? Ensure you tell your accountant so that the sales tax can be deducted.
Many are unaware that you are able to use your 401K to purchase a business and not pay tax. Looking to own a franchise or other business? Contact me for more details.
Call me for all of your Accounting & Tax needs! I am accepting new clients. If you have a topic of interest, call me and I will try to include it in the weekly tax tips. Look for my ad weekly in the Wave! I can be reached at 718-318- 8829 and my office is located on 438 Beach 129 Street, 2nd Floor.