At home with the Wrights

Does anyone have any burning desire to understand a certain tax law? Would you like more clarification on a tax break you heard about in the news or from a friend? Well, today is your lucky day! I've beaten the ARRA of 2009 pretty much into the ground (unless I've missed something; And in that case, please let me know) and I'm ready to move onto other tax topics. But what now? Which direction should I go in? Are you wondering about retirement accounts? Are your taxes keeping you up at night? Do you want to know how you can have a better idea of what to expect at tax time (and actually control it), or do you like being surprised (big refund? Tax bill? Who knows!) ? Now's the time to voice your questions, interest, or passing fancy relating to taxes!

Did you happen to buy a new vehicle (definition of new: You are the FIRST owner of the vehicle past the dealership) last year between February 17th and December 31st? If so, I hope you haven't filed your tax return yet! If you did purchases a qualified motor vehicle last year on or after February 17th, you can deduct the sales tax on up to $49,500 of the purchase price. What is a qualified motor vehicle, you ask? A qualified motor vehicle is a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less. A motor home is also considered a qualified motor vehicle. And remember, you must be the first owner. What if you bought the last year's model off of the lot, but it was still new? You still qualify for the credit! Now, you're wondering, "Do I have to itemize on Schedule A to receive this deduction?" And I tell you, "NO! You don't even have to itemize to receive this deduction!" Alright, e...

Do I have undergrad students out there reading this? Parents of undergrad students reading this? This post's for you! College days...I remember them well. I spent my freshman and sophomore years (1995-1997) at the University of Utah, and then later (2000-2002) finished my engineering degree at BYU. I remember all of the late nights (studying, of course!), early morning commutes and classes, penny-pinching/stretching, and top ramen dinners. I also remember struggling over my tax return each year (what does an 18 to 20-year-old know about taxes?) and wondering why I never got a tax break for paying for college. Well, today is a much brighter day for students (or students' parents) and taxes. Chances are, if you're in undergrad school for the first time (translation: you have only been in college for four years or less TOTAL and you are degree-seeking), you or your parents will get some nice tax breaks. The American Opportunity credit replaces the Hope credit for 2009 an...

Okay...so after waiting a week to see if anyone wanted any specific tax issues tackled, and no comments at all, I guess I'll keep going with the ARRA (American Recovery and Reinvestment Act of 2009) tax changes. Did anyone buy a house in 2009? Are you looking to buy a home right now? If so, you might get a nice check from Uncle Sam this year or the next year. First time home buyers (defined as someone who hasn't owned a home for the 3 years previous to a new home purchase/settlement date in 2009 through June 30, 2010) get a 10% refundable tax credit based on the purchase price of the home, up to an $8,000 maximum tax credit. Long-time home buyers (defined as someone who has owned and lived in the same house 5 out of the last 8 years previous to a new home purchase date in 2009 through June 30, 2010) also can receive a 10% refundable credit based on the purchase price of the home, up to a $6,500 maximum tax credit. Notice that in both cases you must be under contract t...

Hi everyone! Sorry this has taken me so long to post when I promised tax tips the next day. (Please forgive me...I'm working on my tardiness problem in all areas of my life. ***SIGH***) The American Recovery and Reinvestment Act of 2009 (ARRA) introduced many tax changes--many of which are beneficial to YOU. I'm going to give an overview of some of the tax changes today, and then dig deeper into each part of the ARRA tax changes in the following days. So, what does ARRA mean for you? 1. Making Work Pay Tax Credit -- If you have earned income, you will receive a new credit on 2009's tax return -- up to $400 per individual or $800 per married couple. But beware--you may have already received this money in your everyday paycheck throughout this last year. 2. First Time Homebuyer AND Long-Time Homeowner/buyer Credit expanded and extended -- (I'll definitely talk about this one tomorrow or Saturday) up to $8,000 and $6,500, respectively. 3. New Vehicle Purchase Ta...