Kazwell.com

It’s that time of year and there are a lot of income tax changes.  My goal is for you to optimize your 2008 tax benefits.  To this end I will be exploring these changes over the next few weeks in depth on Kazwell.com.  Here is a summary of a few of the items you need to know and we will be looking at in detail in articles to come:
First-Time Homebuyers Tax Credit:  You don’t really have to be a first-time homeowner to qualify, as long as you have not owned a home in the last three years.  To qualify you must have purchased a home after April 9, 2008.  You can still take advantage of this benefit next year if you purchase before June 30, 2009.
Real Estate Tax Deduction:  This additional standard deduction may help you even if don’t itemize.  This deduction is available for the 2008 and 2009 tax years and increases your standard deduction which decreases taxable income.  Other points you may find to be of interest include the following.

Tuition and Fees Deduction allows the taxpayer to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse or a dependent. You do not have to itemize to take this deduction. However, a taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. Income limits and other special rules apply to each of these provisions. 
 Educators’ Out of Pocket Expense Deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.
Recovery Rebate Credit is available for those taxpayers who did not qualify or did not receive the maximum amount for the 2008 economic stimulus payment.  These individuals may be entitled to a recovery rebate credit when filing their 2008 tax return. 
“Cash” Charitable Contributions are still available when documentation is available.  You must have a bank record, credit card statement or a written communication from the recipient showing the name of the organization and the date and amount of the contribution.    These and many more will be discussed in detail here at Kazwell.com and in the Kazwell Newsletter.  Stay tuned in and arm yourself with knowledge. 

If you have a comment or any questions regarding your taxes, call Jennifer Kazwell.  She can be reached at (941) 625-0015.