February 11, 2010
The American Recovery and Reinvestment Act created funding to the states for a rebate program for consumer purchases of new ENERGY STAR® qualified home appliances. The appliances do not qualify for federal energy tax credits, but may qualify for a state rebate program. Each state was allocated an amount of money that can be used as rebates to consumers.
Additional information and a listing of the states with current rebate programs are available on the ENERGY STAR® website.
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January 25, 2010
A new tax relief law allows people who contributed in 2010 to charities providing earthquake relief in Haiti to take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return. This means you can receive an immediate tax benefit, rather than having to wait until you file next year’s return. Certain requirements apply:
- Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
- The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.
- You may deduct these contributions on either your 2009 or 2010 returns, but not both.
In addition, the general rules about tax deductions for charitable donations apply:
- You must itemize your deductions on Schedule A; those claiming the standard deduction, including all short-form filers, are not eligible.
- You must keep a record of any deductible donations you make.
- For donations by text message, a telephone bill will meet the requirement if it shows the name of the donee organization and the date and amount of the contribution.
- For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution.
- Contributions to foreign organizations generally are not deductible.
Make sure your contribution goes to a qualified charity. Most organizations eligible to receive tax-deductible donations are listed in a searchable, online database available under Search for Charities. Some organizations, such as churches or governments, may be qualified even though they’re not listed on IRS.gov.
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January 17, 2010
21) Massachusetts residents: Form 1099-HC
20) Forms W-2 for wages
19) Forms 1099-INT for bank interest
18) Forms 1099-DIV for dividends
17) Forms 1099-G for unemployment compensation
16) Forms 1099-G for state tax refunds
15) Forms 1098-E for student loan interest paid
14) Forms 1099-MISC for self employment income
13) Information regarding gambling winnings and losses
12) Form 1098 Mortgage and Real estate tax information
11) HUD-1 Settlement Statement for new home purchase or refinance
10) Tuition & fees paid for higher education expenses
9) Childcare information (name, address, tax ID of provider & amount paid)
8) Cost basis (original amount paid for stocks, bonds or mutual funds sold
7) Amounts donated to charity (cash and personal property)***
6) Excise tax paid for cars, trucks, , trailers, boats, motorcycles, etc.
5) Union Dues, tools, uniforms & other employment related expenses
4) Mileage log for car & truck expenses
3) Social security card for dependents
2) Bank information for direct deposit or direct debit
1) A check to pay the taxman (note that all outstanding balances are subject to an 18% interest charge).
***NEW***Note that for ALL donations of property (other than cash) you will need the date of the donation, name and address of the charity, value, and an itemized list of the items with the date acquired and cost.
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Actually, quite a few words.
Identity theft has become a hot topic in recent years and it is important for you to know that your personal information is protected when you share it with other individuals and businesses.
Rest assured that we have physical, electronic, and procedural safeguards in place to protect your personal information. Our office has been converted to maintain the great majority of client documents in electronic format. All computers and back-up storage devices are password protected and encrypted to restrict access to data. Any hard copies of data are stored in locked file cabinets and are only accesible to those authorized to work with the data.
Our privacy policy is quite simple: Your personal information will only be shared with members of our firm or tax colleagues who work on behalf of our firm who need to know this information in order to complete the work you have hired our firm to do. We will not disclose your personal and confidential information to anyone outside our firm without your express written permission to do so or unless we are legally required to do so. Period.
We also will not discuss or send copies of any of your personal documents (tax returns or tax documents) or information to any third parties without a written authorization from you. Written authorization documents are available elsewhere on this web-site (see: “New Useful tools>3rd party authorization”).
We will, at times, email copies of tax forms and other sensitive documents directly to you. All email transmissions that contain sensitive client data are encrypted and password protected. We strongly recommend that you do the same with any return emails that contain sensitive information.
Please contact us directly if you would like more information about the steps we are taking to protect your personal information.
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Leonard D. Rea, EA, CFP® (Enrolled Agent, Certified Financial Planner™)
and his team, serving individuals and businesses in the Massachusetts area since 1986.
