| Each year, the IRS releases changes in the US | | | | house, you are very likely to pay PMI. This payment, |
| Federal income tax laws. Much hasn’t changed for | | | | however, will be deducted in full for the 2008 tax year. |
| the past years but the recession during the last quarter | | | | This means you will get all of it back. |
| of 2008 has been a great deal of influence to the new | | | | Recovery rebate credit |
| changes in tax laws. Tough economic conditions such | | | | Some people were not able to benefit from the |
| as a recession mean that the taxpayer should pay | | | | economic stimulus payments last summer by |
| special attention to those changes because this | | | | then-president Bush. If you were one of these people, |
| change may greatly affect your finances. Now | | | | you may still be able to avail of it. If you want to find |
| let’s take a look at those new tax laws for 2009; | | | | out if you are still eligible, you would need to use the |
| Lower-income capital gains tax removed | | | | Recovery Rebate credit Calculator at website of the |
| It’s essentially a tax break. Single taxpayers with a | | | | IRS. |
| taxable income under $32,000 and married taxpayers | | | | Increased penalty for late tax filing |
| with a combined income under $65,000 used to pay | | | | While the abovementioned law changes are beneficial |
| off 5% on those gains. That percentage has been | | | | to the taxpayer, this one does the opposite. In this |
| reduced to 0% for the 2008 tax year. You can also | | | | scenario, procrastination pays. The penalty for filing |
| benefit from this change in law businesswise. Found in | | | | your return more than 60 days after the deadline has |
| box 2a of form 1099-DIV, this change in law allows | | | | increased to either 100% of the unpaid tax or $135, |
| you to avoid paying capital gains taxes in the event | | | | whichever is smaller. Do not waste money |
| you sold off capital assets like real estate, stocks or | | | | These are some of the important laws. For a full listing |
| bonds for a profit off the price in 2008. | | | | of the new tax laws for 2009, log on to the IRS |
| Tax credit for first-time home buyers | | | | website. Knowing the tax laws and actually abiding by |
| There are a couple of new laws that can benefit | | | | them are very important not because the IRS always |
| first-time home buyers. Firstly, if you decided to buy a | | | | has a way of finding out your little tax evading |
| home between April 9, 2008 and June 30, 2009, you | | | | schemes. Though this is true, the reason tax laws |
| can take a staggering $7,500 tax credit. This can help | | | | should be followed is because disobedience can cost |
| anyone immensely because not only would you gain a | | | | you a fortune. Your finances have already been hurt |
| large sum, but this would automatically reduce your | | | | by the current economic crisis, don’t let ignorance |
| total tax payments. | | | | of the new tax laws hurt you more. Know them. Take |
| The second law concerns private mortgage insurance | | | | advantage of the laws that can benefit you, as well as |
| (PMI). If you both took out the first mortgage later than | | | | avoid those that can do otherwise. |
| January 1, 2007, and put less than 20% down on the | | | | |