Tim’s  Top Ten Tax Tips for 2009
By: Tim Mauk, CPA, Sr. Manager with DuvallWheeler CPAs, LLP

2. If You Own or Operate a Business: Remember there are different due dates for different forms.  Most payroll reports are due January 31st; forms 1099 and W-2 are due February 28th (recipient copies should be furnished by January 31st); corporate tax returns are due March 15th.

3. Retirement Plan Contributions: Individual IRA contributions must be deposited by April 15th.  But business plans such as a SEP or a profit sharing plan have until the due date of the return, plus extensions.

4. Tough Times = Special Deductions: Stock losses are deductible, but subject to certain limits.  Job search and possibly moving expenses can be deducted and there are special rules if you suffered a foreclosure on your home.

5. Higher Education Tax Breaks: College and vocational education can qualify for the Hope Scholarship and Lifetime Learning credits on Federal returns and Section 529 Plan contributions are deductible on most state tax returns.

6. Bought a New Home or Hybrid Car?: First-time home buyers who purchased a principal residence after April 8, 2008 may qualify for a credit as well as those who bought a hybrid vehicle in 2008.

7. Alternative Minimum Tax L: Beware!  Although Congress has made the “AMT patch,” the AMT is still an animal to be dealt with especially if you have exercised stock options or have a large long-term capital gain.

8. Flexible Spending Accounts: Check with your employer, but depending on the type of plan, you may have until March 15, 2009 to use any remaining 2008 balance.

9. Consider Electronic Filing and Direct Deposit: Saves time and can result in a much faster refund.

10. When You Need Help Call an Expert:  CPAs are licensed and degreed professionals that talk tax year round.  We don’t take a six week tax course and hang out a shingle.  CPAs are trained experts in all types of tax law.