Oregon Tax Credits Blog

1. COBRA – Taxpayers who lost their jobs between Sept 2008 and May of 2010 may qualify for reduced health insurance premiums.

2. Education benefits – the American Opportunity Credit (changes)

3. Home buyer Credit – Credit up to $8,000 – Must provide documentation – First Time Home buyer Program (stipulations)

4. Additional child tax credit – More people will qualify

5. Making Work Pay Tax Credit – More take home pay for taxpayers

6. $250 for Social Security Recipients, Veterans and Railroad Retirees – Call 1 866-234-2942 to see if you qualify

7. Rebate on New Vehicles

8. Increase in Transportation Subsidy

9. $2,400 Unemployment Benefits, not taxable

10. Health Care Tax Credit – increase to 80 % of qualified health care insurance payments

(The complete detailed list can be found at IRS.gov)

The IRS says it will start to process tax returns on February 14, which are delayed due to recent changes in tax laws and credits.

Schedule A is the is the problem Form for this year, (2010) due to last minute changes in the tax code late last year. The changes must be “incorporated by the IRS Computer”

Tax professionals throughout the country are waiting for the final updates before preparing tax client’s returns, which include Schedule A.

Returns claiming the Earned Income Tax Credit, child tax credit and other credits can be filed as usual. And refunds are expected in the usual time frame.

Because of the large number of new and changed tax credits, I would personally encourage taxpayers to seek out an affordable tax professional to ensure that you receive the maximum credits available to you.

If you complete the forms incorrectly, the IRS will make the adjustments for you, or send you a CP2000 (paper audit) which you will need to respond to.

This is a message of caution. Tax professionals are banning together, online to be exact on IRS requirements for these new tax laws and credits, after all, this information was not in our annual tax classes, which is required by law in the state of California.

The tax professional’s software companies and their tax attorneys will be working overtime until the updates are released. No professional tax software company can afford to get it wrong.

Article Source: http://EzineArticles.com/?expert=Cassandra_Ingraham