More Tax Breaks for 2010

By: Sandi

More Stimulus Checks, Social Security Payments & Tax Credits in 2010, 2011 and Beyond. All the tax credits/deductions & payments provided in the immense 2009 economic stimulus package will be hard to surpass in coming years.

 

The good news is that there will be more credits & deductions available to most Americans in 2010, 2011 and after. These will continue to be funded from the $700 billion stimulus package, with additional funds coming from President Obama's ten year annual budget. For many Americans these payments are a big and much needed advantage in these hard economic times.

 

Whatever your view as it relates to the stimulus payments, many of these tax credits & deductions have been passed by Congress & signed into law by the president. So if you qualify, saying no to what amounts to free money is just bad personal finance. Therefore plan ahead and make sure you take advantage of these credits.

 

Extended till 2013

The Making work pay tax credit provides $400 for individuals and $800 for couples, phasing out completely at $190,000 for couples fling jointly and $95,000 for single filers. Because the credit is refundable (people can get it even if they owe no tax), most low income workers will also qualify for the full credit. If you're eligible, your payroll administrator will make the withholding adjustment automatically and increase your take-home pay. The average worker will see this tax credit in the form of a $10 & $20 pay rise per year based on your tax rate.

 

You may prefer not to adjust your withholding amount and can get your stimulus in a lump sum payment as a tax refund when you file your 2010 taxes. Under the 10 year Obama budget, this credit is set to be extended to 2013.

 

Mass Transit Fringe Benefit in 2010

Employees may exclude from income $230 per month in commuter transit benefits in 2010 (adjusted for inflation). These qualified transportation fringe benefits are excluded from an employee's gross income for income tax purposes & from an employee's wages for payroll tax purposes.

 

Energy Credits in 2010 and 2011

Given the President's strong focus on the environment & clean energy, it was not surprising to see additional tax credits for home energy efficiency improvements. The stimulus package provided for a uniform credit of 30% on the cost of qualifying improvements up to $1,500, such as adding insulation, energy-efficient exterior windows, & energy-efficient heating and air conditioning systems. The credit can be claimed via your tax returns in 2010 & 2011 for improvements placed in service during 2010.

 

Eductaion Credits claimable in 2010 and 2011

The New American Opportunity Credit modifies the existing Hope Credit for tax years 2010, making it available to a broader range of taxpayer's, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses. Many of those elegible will qualify for the maximum annual credit of $2,500 per student. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for 4 post-secondary education years instead of 2. The full credit is available to individuals, whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. Many of those eligible will qualify for the maximum annual credit of $2,500 per student, so make sure you look into it, to help with rising college costs. There are also provisions in the 2010 budget to increase the maximum Pell Grant for college students, from low income households, in the next school year to $5,500.

About the Author

Sandi Lattin

Online Tax Pros

Russellville, Arkansas

http://onlinetaxpros.com

(ArticlesBase SC #3774116)

Article Source: http://www.articlesbase.com/ - More Tax Breaks for 2010

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Top 3 Ways to Waste Money on Home Improvements

If you've taken out a mortgage loan either to buy a house or to refinance, you may have added some extra capital to the loan amount for home improvements.  Working on your home, whether you've just purchased it or you've owned it as a primary residence for years, can return positive benefits for you, your family, and your finances.

But be careful.  There are some home improvement projects that will just drain your money.  Any project, if it goes over budget or takes too long or is left incomplete, can take up more money than it needs to.  But the following three projects are generally considered to be big money wasters when it comes to home improvement.

3. Adding a home office.  You may need one, but the person who buys your home after you probably won't.  Actually, the future owner will probably want to convert the office into a bedroom, which means he or she will see the office as a loss, as something that will require additional money.  Also, offices are notoriously expensive to put together.  You'll likely need to add an additional phone line, internet connections, and non-movable furniture such as cabinets.  A home office may actually reduce the overall value of your house.

2. Adding a garage.  Building a garage actually requires much of the same development work and structural work that building an entire house requires.  Roofing, foundation, and other similar elements—including plumbing if you want to incorporate a half bathroom—demand a great deal of time and labor.  Because garages are considered to be a standard element of a home, adding one won't increase your home value too significantly.  Not enough to make up for the investment of building the garage.

1. Adding a swimming pool.  This one may surprise you.  Truthfully, a swimming pool can and often does increase the resale value of your home.  But more often, potential buyers are turned off by the massive maintenance costs and potential risks that pools present.  Especially with the economy the way it is, potential buyers aren't as willing to pay for expensive luxuries like swimming pools.  And they are expensive.  Your home value won't increase enough to make up for the cost of adding a swimming pool.

Avoid these three home improvements unless they're completely necessary.  Financially, these three home improvements won't have positive results.

About the Author

Krista Scruggs is an article contributor to Lender411.com. Lender411.com will locate the best mortgage rate in your area by connecting you instantly with up to four qualified lenders. Visit Lender411.com today to compare mortgage rates instantly.

(ArticlesBase SC #2980116)

Article Source: http://www.articlesbase.com/ - Top 3 Ways to Waste Money on Home Improvements

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Can I Leave My House And Then Declare Bankruptcy?

By: Steve Jackson

When a home owner finds that they are no longer able to maintain their mortgage payments they may have to hand back the keys to the property and move out. Bankruptcy is then the easiest option to write off outstanding debts and start again debt free. After the changes brought in by the enterprise act of 2002, the rules surrounding bankruptcy were amended. Most significantly, the period that a person remains bankrupt in most cases was reduced from 3 years to 12 months.

It was suggested by many that these changes revolutionised the bankruptcy process making it much easier for an individual to go down this route. In reality however, the main reason why people avoid bankruptcy has remained unchanged. This is that they are home owners who do not want to risk losing their property. The loss of property is a likely outcome if a home owner declares bankruptcy because if there is any significant equity, the house will normally be sold to realise this for creditors.

However, this reluctance to declare bankruptcy no longer applies if the homeowner is already resigned to leaving their property. In a situation where an individual knows they are unable to continue to pay the mortgage on their property, it is likely to be repossessed by the mortgage company and they will have to move out. If the individual has unsecured debt outstanding (which will almost always be the case given a likely mortgage shortfall), bankruptcy becomes a very real option as there is no longer a property to lose.

For people who know they will have to leave their property and then want to deal with their unsecured debt liability, the bankruptcy process is relatively simple. The first step is to move into alternative rented accommodation. This should be done before declaring bankruptcy to aid the credit checking process. Once done, the mortgage company can be told that the mortgage on the old house will no longer be repaid and that the house should be repossessed. At this stage it is advisable to complete a voluntary surrender form confirming to the mortgage lender that the property has been vacated. The local council should also be informed so that council tax is no longer charged.

The bankruptcy process can then be completed including any estimated mortgage shortfall in the list of unsecured creditors. This and any other secured debt will be written off by the bankruptcy. In 12 months, the individual will be discharged debt free to continue with their life.

Of course, a solution like this is not suitable for everyone. For example, you cannot continue as a company director if you declare bankruptcy and as such, bankruptcy is not generally possible for directors. However, for the vast majority of people who have no property, the downsides to bankruptcy are minimal. As such it is often an excellent solution for those who have already made the decision to walk away from their property but are worried about being left responsible for a mortgage shortfall.

About the Author

Steve Jackson is a debt adviser from BeatMyDebt.com in the UK. For more quality and unbiased information on Personal Debt Solutions, visit our website at www.beatmydebt.com

(ArticlesBase SC #2053503)

Article Source: http://www.articlesbase.com/ - Can I Leave My House And Then Declare Bankruptcy?

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