Tax Highlights for 2009

So you had income that your employer withheld taxes on? Well even if you don't think you have to file or made enough (especially in that case as the simplest single return, if you claim yourself gives you back every withheld federal and state dollar when you make less that $9350)

First, you'll need get together your tax documents, such as:

• W-2s for wages, salaries, tips and pensions
• 1099g for unemployment, some states available electronically
• 1098s for mortgage interest paid
• 1099s for interest, dividends, state tax refunds and other payments
  
• K-1s from partnerships, S corporations, estates and trusts
• Your prior year federal and state return
• Any correspondence you've received from tax agencies
• - Basically, all the forms look similar, and are from ANY form of taxable income you've received

A couple big highlights for the 2009 tax season changes include:

• The Making Work Pay Credit - (6.2% of your income up to) $400 for a Single filers or $800 for MFJ.
• The American Opportunity credit is an educational credit that expands the prior Hope credit from 2 years of use to 4 years and adjusts the numbers for the year.
• Earned Income Credit (EIC) expanded to include 3 eligible dependents as opposed to 2 in prior years yielding a maximum refundable credit of $5,657 based on your income
• Government Retiree Credit - An addition $250 credit if you receive a pension from the Federal, State, or local government.
• New rule for divorced or separated parents, new for 2009 form 8332 is required whereas a copy of divorce or custody orders would suffice.
• Unemployment Compensation - First $2400 dollars of benefits received are tax fre

These are just a couple of the highlights I found most important for the 2009 tax year as an employee at a local Jackson Hewitt franchise, refer to the IRS website or the IRS's Listing of 2009 Tax Change for Individuals

Want to get the quickest refund you can? Find out your routing and account numbers off a check or by calling your bank and then both electronically file and direct deposit to receive your refund in 8-15 days. This same time frame is available to those with the resources to file on their own and those who go to a free or professional tax consultant.

Professional tax preparation offices are often tied in with a bank that allows them to facilitate loans that are paid off by the tax refund, thus enabling customers to get refunds in a day, in an hour, with fees subtracted from the refund, or any sort of financial package assembled by the bank. Several franchises and companies across the country are paralyzed this season with a lack of their rapid refunds as Santa Barbara Bank and Trust, a primary leader in the refund anticipation loaning business announced its unwillingness to participate with rapid loans this year weeks before the tax season started. With a year's time to renegotiate with competitor banks I assume the majority of companies should have this problem averted by next year.

WI State Homstead Credit

For those residing in my local Wisconsin, don't forget about the Homestead Credit, a refundable credit required a landlords signature on a rent certificate, and a schedule H. This credit is particular to wisonsin and gives credit to renters and homeowners with an income > $24,500