How Much Was My 2008 Stimulus Payment?

To determine How Much Was My 2008 Stimulus Payment you'll need the following information from your 2007 tax return:

1. Your Social Security Number
2. Your 2007 Filing Status
3. Number of Exemptions claimed your 2007 tax return

Recovery Rebate Credit

The recovery rebate credit is a one-time benefit for people who didn't receive the full economic stimulus payment last year and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

Who are Eligible:

People who fall into the categories described below may be eligible for the recovery rebate credit this year:

1. Individuals who did not receive an economic stimulus payment.
2. Those who received less than the maximum economic stimulus payment in 2008 — $600 per tapayer; $1,200 if married filing jointly — because their qualifying or gross income was either too high or too low.
3. Families who gained an additional qualifying child in 2008.
4. Individuals who could be claimed as a dependent on someone else’s tax return in 2007, but who cannot be claimed as a dependent on another return in 2008.
5. Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008.

How to Claim:

You need to claim the recovery rebate credit on Form 1040, 1040A or 1040EZ. Unlike the economic stimulus payment, the recovery rebate credit will be included in your tax refund for 2008 and will not be issued as a separate payment.

Source: www.irs.gov

2008 Efiling Starts Jan 16th, 2009

The Internal Revenue Service today announced the Jan. 16 opening of an expanded IRS e-file program for 2008 federal tax returns. The efile program is highlighted by new features that will allow expanded access to electronic filing and help people looking for faster refunds.
Taxpayers who use e-file and who choose direct deposit can receive their refund in as few as 10 days. That's because with e-file, there's no paper return going to the IRS. And with direct deposit, there's no paper refund going to the taxpayer. So it’s all electronic and much faster than paper.
IRS e-file allows taxpayers to file their returns now and pay later if they owe taxes. It allows taxpayers to file both federal and most state returns at the same time.




Source:IR-2009-005

IRS To Help Financially Distressed Taxpayers

Taxpayers in hardship situations may be able to adjust payments for back taxes, avoid defaulting on payment agreements or possibly defer collection action as IRS is considering several options to help the taxpayers.

Some of the areas considered by IRS to help the taxpayers-

• Postponement of Collection Actions in certain hardship situation.
• Added Flexibility for Missed Payments in existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship.
• Additional Review for Offers in Compromise on Home Values.
• Prevention of Offer in Compromise Defaults by considering other available options.
• Expedited Levy Releases for hardship reasons.

For detailed information-

http://www.irs.gov/newsroom/article/0,,id=202244,00.html

Source:IR-2009-2, Jan. 6, 2009

Obama Stimulus Plan Includes $300 Billion Tax Cut

President-elect Barack Obama plans to include about $300 billion in tax cuts for workers and businesses in his economic recovery program as he seeks to win over Congressional skeptics worried that he was too focused on government spending, advisers said Sunday.
Read more....
http://www.nytimes.com/2009/01/05/us/politics/05spend.html
http://money.cnn.com/2009/01/05/news/economy/obama_stimulus/index.htm?postversion=2009010511
http://online.wsj.com/article/SB123117214431054061.html

Gift Tax 2009

Normally a person can give up to the annual exclusion amount $13000 for 2009 to a person, every year ($ 26000 in 2009 if spouses joins in for the gift) without facing any gift taxes and note that such amounts do not count as part of your $1,000,000 lifetime total.

Further, IRS allows a person to give up to $1,000,000 in gifts, total, in their lifetime, before they start owing the gift tax. (This gift is not per (donee)person but its a per donor limit). So you can make gifts that are worth up to a $1,000,000 during your lifetime without paying the gift tax. . Even if you do not owe a gift tax because you have not reached the $1,000,000 limit, you are still required to file gift tax return if you made a gift that does not qualify as excludable.

Required Minimum Distribution Suspended For 2009

On December 23, 2008, President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008 (H.R. 7327) (the "WRER Act"), which provides that owners and beneficiaries of IRAs and other defined contribution plans who are required to take required minimum distributions ("RMDs") from their plans in tax year 2009, will generally be able to leave their money in their plans without suffering any penalty for failure to withdraw. The normal rules are still in effect for 2008.

Florida Corporate Income Tax Estimated Tax Due Dates Are One Day Earlier After January 1, 2009.

Effective January 1, 2009, regardless of the tax year, the due dates for declarations of estimated tax and the due dates for payments of estimated tax will be one day earlier than previously required. This change will require declarations and payments of estimated tax to be made on or before the last day of the 4th month, the last day of the 6th month, the last day of the 9th month, and the last day of the tax year. This earlier payment due date must be taken into consideration when making electronic payments, which must be initiated before the due date.

TIP #08C01-08 (FLDOR)