Top Ten Tax Tips for the 2009 Filing Season

As Taxing Times celebrates its 25th anniversary of serving clients in Naperville and surrounding communities, co-owner Rick Wion, E.A., offers these Top 10 Tax Tips for the 2009 filing season.

"The recession and economic uncertainty of the past 18 months have produced the most significant tax law changes since 1986," Wion said.

As you organize your documents, keep these tips in mind when filing your 2009 taxes:

1. Taxpayers who faced foreclosure of their principle residence may exclude up to $2 million of mortgage debt forgiveness from taxable income.
2. The first $2,400 of unemployment benefits you received in 2009 is tax-free.
3. Many first-time home buyers will qualify for an $8,000 refundable tax credit for the purchase of a primary residence prior to April 30, 2010. Existing homeowners are eligible to receive up to $6,500 in refundable credit if they buy a replacement home by June 30, 2010.
4. There are revised rules for divorced or separated parents claiming exemptions for dependent children.
5. The 2010 standard mileage rate for business miles has changed to 50 cents/mile and medical/moving mileage is now 16.5 cents. You may deduct 14 cents for miles driven in service of charitable organizations.
6. Eligible taxpayers may claim up $3,600 in education credits for post-secondary student dependents attending school at least half-time.
7. A special sales tax deduction is available for new cars, light trucks, motor homes and motorcycles. Sales tax paid on the first $49,500 for each vehicle purchased qualifies.
8. The Energy Saving Home Improvements Credit allows a tax credit of up to $1,500 and is available for 2009 or 2010 for qualified personal residence products. Manufacturers' certification is required.
9. Taxpayers with taxable income of $67,900 or less (<$84,600 AGI) will enjoy a zero tax rate on long-term capital gains and qualified dividends with higher income individuals benefiting from reduced tax liability in 2009/10.
10. The state of Illinois now requires that PIN numbers from property tax bills be stated on the return to qualify for the state property tax credit.

    Since 1985, Taxing Times has been serving residents of Naperville and surrounding communities. Taxing Times staff members have prepared more than 18,000 returns and have never been assessed a preparer penalty or filed a liability insurance claim.