Archive for 20. November 2009

Amending 2008 for the $8,000 First Time Homebuyer Credit

Yes, you can do that HOWEVER we are advising clients NOT to do it…..

The IRS has announced that an amended return (for any reason) is taking 16 to 20 weeks to process (it is because of this $8,000 credit that the system is bogged down).  Today is Nov 20, 2009.  If it takes the minimum of 16 weeks, that is the middle to third week of March, 2010.  If it takes longer (and it probably would since the 2010 tax filing season is then), that would be sometime in April, 2010 anyway.

Instead, file your 2009 return the first week of February, 2010 electroncially and have the refund electroncially deposited.  This will take somewhere between 8 to 14 days, 21 at the most…. so, you’ll receive your refund sooner without the time and trouble of amending 2008!

We will be happy to help www.USATaxHelp.com

Can I still qualify for the $500,000 exemption if my spouse died?

A Married Filing Joint couple can sell their home and not pay tax on $500,000 of GAIN if they’s lived in the home 3 out of the last 5 years.  There is no requirement to invest in a home of equal or greater value.

But, if one spouse dies and the home is then sold after the death, can you still qualify?  The answer is  YES

You can still qualify IF you are unmarried at the time of the sale and the sale occurs within 2 years after the date of death.  The time, use and frequency requirements still have to be met prior to death.

 Please feel free to contact us if you have any further questions www.USATaxHelp.com

What if I owe the IRS and Can’t Pay in Full?

Set Up an Installment Agreement.  You really don’t need to hire anyone.  Some general rules…

If you owe Personal Income Tax of less than $10k, divide the amount by up to 36 months and offer to pay this… it is a GUARANTEED INSTALLMENT AGREEMENT.

If you owe Personal Income Tax of less than $25k, divide the amount by up to 60 months and offer to pay this…. It is a STREAMLINED INSTALLMENT AGREEMENT.  It is not guaranteed but it usually works.

If you owe Payroll Tax, divide the amount by up to 24 months.  This is usually successful.

In all circumstances, you will have to be “In Compliance”… meaning, you have filed timely, and paid timely since the agreement.  If you violate the “In Compliance”, you are back to square one.

Again, you do not really need to hire anyone in the above circumstances… but if you feel more comfortable in doing so, or your situation is you owe more than the above amounts, you can contact us www.USATaxHelp.com

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