Dec 02 2008
New Tax Updates: Who will they affect?
Tax season is almost upon us and for most it can not get here fast enough, so many are struggling to make ends meet in the current economy. I recently attended a two day seminar to train for my seasonal employment, Tax Office Manager, and I learned about some interesting updates for the 2008 and 2009 tax years.
How many will be affected by these updates? I can only guess at this point but the implications seem to be millions; if you have never read an entire tax law then you know why I say that, unless you enjoy reading completely complicated legal jargon that deal with taxes you can get lost by the second paragraph. From what I understand from going over the summaries of just a handful with the tax school advisor, the new updates mean more money in the tax payers pockets come time to file.
Increases in the amount of the refundable portion of Child Tax Credit and a special computation effective for 2008 only, is the biggest change brought on by the Emergency Economic Stabilization Act of 2008, and Tax Extenders and altenative Minimum Tax Relief Act of 2008. This bill passed in October of this year also has sections that cover buisness credits, disaster relief, energy incentives and revenue raising. The definition of a qualifying child was modified as well through this bill; a child must be younger than the tax payer and be unmarried.
Take a look on the IRS website and learn a few things about the coming tax seasons, it is always a good idea to keep up to date with laws and regulations that will affect you tax situations when it is time to file.
Link to IRS page highlighting the Child Tax Credit and standard deduction changes found HERE.
NOTE AND DISCLAIMER:This is not tax advice nor do I claim to be an authority on the subject of tax laws and procedures, if you are seeking advice or wish to learn more about this bill, please visit the links above for the IRS official website. Some changes are in the Proposed stage and may not take effect.
