| Increase Your Workers' Paychecks: It's the Law! |
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The economic stimulus package proposed by
President Obama and passed by Congress
includes a "Making
Work Pay" tax credit of 6.2% of a
person's income, up to $800 for a married
straight couple.
By April 1st, employers are required to
reduce the tax withheld from paychecks to
account for the credit. Putting extra
dollars into everyone's wallet is a key
purpose of this component of the economic
program!
If you use a payroll service (which we
recommend), you can double-check with them to
see when they're implementing the new tax
tables. If you prepare your own payroll,
start using the new tables soon!
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| More Tax Breaks for First-Time Buyers |
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Qualifying taxpayers who buy their first
home this year before December 1 can get up
to $8,000, or $4,000 for people who are
married filing separately.
This credit comes with a special twist: you
can claim the tax credit either on your 2008
tax returns due April 15 or on your 2009 tax
returns next year.
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| Helping with COBRA Costs |
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The American Recovery and Reinvestment Act of
2009 provides for a 65% reduction in COBRA
premiums for eligible individuals for up to 9
months. The program is an employer-provided
subsidy for employees
who involuntarily lose their jobs.
Both the IRS and the Department of Labor are
working to help unemployed workers and their
former employers comply with the provisions.
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| Buy a New Car, Deduct the Tax |
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The just-enacted stimulus package includes a
provision that allows you to deduct state and
local sales and excise taxes paid on the purchase
of new cars, light trucks, motor homes, and
motorcycles through 2009. The deduction is
available regardless of whether you itemize
deductions.
The deduction is limited to the tax on up to
$49,500 of the purchase price of an eligible
motor vehicle. And, the deduction is phased out
for high-income earning taxpayers.
Most of our articles include a link to get
more information. But, we don't want to play
favorites and pick a car brand for you.
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Taxes are the Price We Pay for Civilization |
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"Taxes are the price we pay for
civilization," said Oliver
Wendell Holmes, Jr.
Whether you think we're getting too little or
too much civilization, the American Recovery
and Reinvestment Act of 2009 has provisions
which push cash into your business and
personal life.
This newsletter highlights four sections of
the law that touch small businesses and their
owners. For more details, check out the official
IRS information, and contact
Sterck Kulik O'Neill to discuss how the
new provisions affect you.
But, back to paying for civilization.
"Yeah, it's tax deadline, but government
isn't all
bad," claims Jim Verdonik. Read
what he says and see if you agree!
Geoffrey P. Kulik, CPA
Partner
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