Category: tax credits

  • Tax Tip: Double Check Payroll Withholding

    Tax Tip: Double Check Payroll Withholding

    The IRS has released a new tax tip for 2009 which describes why it is important to double check your payroll withholding during the year so you will not be surprised when you file you taxes and did not without enough federal tax. With the reductions in withholding under the Making Work Pay Credit passed by the government, some Americans may not be withholding enough tax based on their incomes.

    Affected Groups

    Groups that might fall into this category include multiple job holders, spouses that both work, and workers that are claimed as dependents on their parents tax return. If these groups do not adjust in time to collect additional taxes during the year, they may owe taxes when they file in 2010.

    Making A Change

    Taxpayers can visit the IRS website to learn more about adjusting their withholding and can also read the instructions that accompany the W-4, Withholding Allowance Certificate, form. Once completed, returning the form to your employer will correct any necessary withholding issues that you currently have.

    <img alt=”image” src=”https://2009taxes.org/”0″ />

  • ARRA Provides Tax Benefits to Businesses

    ARRA Provides Tax Benefits to Businesses

    The American Recovery and Reinvestment Act of 2009 provided some new and some improved tax benefits for businesses according to the IRS. If you are looking to hire veterans or disconnected youth than their is a tax credit that you should look into. Plus renewable energy tax credits and new loss carry-back rules.

    1. Work opportunity tax credit: Allows for a tax credit to business that hire returning veterans or disconnected youth. Two new classes added to a list of classes already supported.

    2. Renewable Energy Incentives: A number of new bonds and grants are available to business that want to invest in renewable energy projects. Take a look at the list.

    3. New Operating Loss Carryback: Small business that paid taxes on gains in the previous 5 years can now carry back their current losses and obtain refunds.