Metropolitan Commuter Transportation Mobility Tax

Metropolitan Commuter Transportation Mobility Tax

Just a reminder that the 1st payment of the new Metropolitan Commuter Transportation Mobility Tax is due Monday, November 2, 2009. The New York State Department of Taxation and Finance has contacted more than 700,000 employers and self-employed individuals doing business in the Metropolitan Commuter Transportation District who may be required to pay this new tax. The District encompasses the five boroughs of New York City and the Counties of Dutchess, Nassau, Orange, Rockland, Suffolk and Westchester.
The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). This department administers the tax for the Metropolitan Transportation Authority. (The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.) The tax applies to:
• Employers who are required to withhold New York State income tax from wages and who have payroll expenses exceeding $2,500 in any calendar quarter. The tax is retroactive to March 1, 2009 for employers.
• Self-employed individuals who have net earnings in the District that exceed $10,000 for the tax year. The tax is retroactive to January 1, 2009 for self-employed individuals

A couple of new tax laws for 2009

A couple of new tax laws for 2009

If you purchased a motor vehicle from 2/09 through the end of the year, you may qualify to deduct the sales tax on your income tax return up to $49,500 on the new car. If you were planning to purchase a new vehicle for home or business, this provides an excellent incentive for taxpayers to consider. You must be the 1st owner of the car. Tax benefit is subject to taxpayer’s adjusted gross income.

If you’re a small business owner, you may qualify to reduce your 2009 estimated taxes. The estimated payments are 90% of your 2008 or projected 2009 tax liability, whichever amount is smaller. In addition to lower estimated taxes, small business owners may take advantage of increased section 179 deduction for up to $250K. This deduction allows small business owners to deduct most tangible business property such as office equipment, computers and the vehicles.

Oct 15 Deadline

Reminder - The Oct 15 deadline approaches for taxpayers who:
1. applied for the 6 month extension for their 2008 tax return
2. it is also a special voluntary disclosures by taxpayers with assets in previously undisclosed offshore accounts

Several tax facts about the American Opportunity Tax Credit

The new American Opportunity Tax Credit provides many benefits. One of the benefits of the credit is that many taxpayers will be able to apply the cost of qualified educational expenses at a qualified educational institution for the next two years under the American Opportunity Tax Credit. In addition, the credit is a refundable credit which means that even if the taxpayer has no tax liability, they may qualify to receive cash back. Below are several important tax tips about the American Opportunity Tax Credit.
1. The full credit is limited to $2,500. This is broken down by first $2,000 paid is applied as credit. Then extends to 25% of the next $2,000 up to $500 for qualifying expenses.
2. The credit is a refundable credit up to $1,000 per student.
3. The credit is available for qualified expenses for higher education in 2009 and 2010. Qualified expenses is defined as expenses related to tuition and related fees, books and other required materials for course.
4. The credit is dependant on the taxpayers income. It phases out for higher income taxpayers.
5. The credit is available for any of the first 4 years of post-secondary education.



http://www.irs.gov/newsroom/article/0,,id=213584,00.html

First Time Homebuyer Credit- expiring soon

With the market the way it is, the American Recovery and Reinvestment Act has placed several programs for taxpayers to take advantage. One of the popular one is the First Time Home Buyer Credit. This credit has provided tax benefits to over 1.4 million taxpayers and counting. Unfortunately, the First Time Home Buyer Credit is available for a limited time. As a result, the IRS has announced that in order to qualify for the credit, potential homebuyers must close on their new home by 11/30/09 and complete their first-time home purchase before 12/1/09.
Just a quick reminder about the First Time Homebuyer Credit- The Credit is available to US citizens or residents purchasing a qualified home in the United States. This credit is 10% of the purchase price or up to $8,000 maximum. In addition, homebuyers with qualifying income levels could not have owned a home in the past 3 years. Another added benefit is that this credit is a refundable credit, meaning the taxpayer will be able to receive the money even if they owe no tax or the credit is more than the tax liability.



source: http://www.irs.gov/newsroom/article/0,,id=213375,00.html

Several facts about New Vehicle Sales and Excise Tax Deduction

For 2009, there are special tax deductions for taxpayers who purchase new motor vehicles. The sales and excise tax may qualify for deduction for qualified taxpayers. For taxpayers in states where sales tax is not applied may be eligible to deduct other fees and/or taxes. Listed below are several facts about new vehicle sales and excise tax deduction-
1. Qualified vehicles generally include new car, motorcycles, light trucks that weigh $8,500 pounds or less and motor homes (not subject to weight limit)

2. Qualifying vehicles up to $49,500 of the purchase price may qualify to deduct the state and local sales and excise taxes on their 2009 returns.
3. Purchase of the qualified vehicle must be after Feb 16, 2009 and before Jan 1, 2010
4. Taxpayers who purchase new motor vehicles in states that do not have state sales taxes may be entitled to deduct other fees or taxes assessed on the purchase of those vehicles. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.
5. This deduction applies to taxpayers who takes the itemized and standard deductions
6. The amount of the deduction is phased out for taxpayers after a certain income threshold




source: http://www.irs.gov/newsroom/article/0,,id=213200,00.html

529 Education Savings Plan- Extended

With rising tuition costs, 529 plans has been growing in popularity since it is an attractive way to save for college. 529 plans allow the taxpayer to contribute money in the plan and withdraw the money tax-free so long as it is used for qualified education-related expenses for a designated beneficiary. Qualified expenses include tuition, required fees, books, supplies, equipment and special needs services. In addition, it can be used to buy computer equipment and services for an eligible student. For 2009 and 2010, 529 plan benefits have been extended to expenses for computer equipment and technology or internet access and related services to be used by a qualified student while enrolled at qualified educational institution.