Just a reminder of some of the new changes

[kcjenkins]

* ADOPTION TAX CREDIT increases to $12,150 for adoption of an eligible child.

* SECTION 179 maximum deduction decreases to $133,000. Phase-out threshold is $530,000. (It is generally expected that a stimulus law in early 2009 will increase these amounts to the 2008 levels of $250,000 and $800,000.)

* STANDARD MILEAGE RATE for business driving effective January 1, 2009, is 55¢ a mile. Rate for medical and moving mileage is 24¢ a mile. Rate for charitable driving remains at 14¢ a mile.

* ESTATE TAX top rate remains at 45%, but the exemption amount increases to $3.5 million. The ANNUAL GIFT TAX

EXCLUSION increases to $13,000.

* 401(k) maximum salary deferral increases to $16,500 ($22,000 for 50 and older).

* SIMPLE maximum salary deferral increases to $11,500 ($14,000 for 50 and older).

* IRA contribution limit remains at $5,000 ($6,000 for 50 and older).

* KIDDIE TAX threshold increases to $1,900 and applies up to age 19 (up to age 24 for full-time students).

* NANNY TAX threshold increases to $1,700.

* TRANSPORTATION FRINGE BENEFIT limit increases to $120 for vehicle/transit passes and to $230 for qualified parking.

* SOCIAL SECURITY taxable wage limit increases to $106,800. Retirees under full retirement age can earn up to $14,160 without losing benefits.

* HOPE CREDIT maximum remains at $1,800.

* HSA CONTRIBUTION limit increases to $3,000 for individuals and to $5,950 for families. An additional $1,000 may be contributed by those 55 or older.

Thanks to the late passage in 2008 of AMT patch legislation, the AMT exemption amounts for 2008 are $69,950 for joint filers, $34,975 for couples filing separately, and $46,200 for single taxpayers and heads of household.

[Tax Prep by Deb]

Thanks for the info!

Deb!

[jainen]

>>some of the new changes<<

And don't forget that tax preparation fees went up an average of 10% this year!

[Virtual Managed Solutions]

>>some of the new changes<<

Unlimited Technical Support stayed the same at $199 for a full year though

Thanks for the info KC, it's also interesting to learn something new.

[michaelmars]

MY blood pressure went up 6% for the year.

[Maura]

And the transportation fringe benefit covers biciycle purchase, repair and storage

[Tax Prep by Deb]

>>some of the new changes<<

And don't forget that tax preparation fees went up an average of 10% this year!

Not mine. I froze my prices this year and sure hope my clients appreciate it and refer others to me. With the economy the way it is I felt that if I froze my prices they would still come instead of trying to do them themselves. Only the next three months will tell if it was a smart decision.

Deb!

[mcb39]

Deb, surprisingly, people are calling for Feb appts already and many of them are ones I did not expect (or particularly want) to hear from. I am not raising my prices either, but so far nobody has asked. I did send out letters to regulars saying that I needed payment up front this year due to collection difficulties in 07. I actually had some go right down to the wire for filing before they paid. I am really not into this "tax thing" this year. :dunno:

[Tax Prep by Deb]

Same here on everything you said!

I have dreaded the start of tax season this year for a number of reasons. But I have had several of my clients come, some already setting appointments, but I am sure hoping for more than what I have gotten so far.

My dad passed away in September, and he was my right hand man! Every time a client comes through the door they ask about him and I have to tell them and watch their shock over and over again. Fortunately they are very understanding, but it causes me to dread them coming in because of having to repeat everything over and over.

I knew this would be a tough year for more than one reason. Always in the past my Tax season money was what I would call my play money and what I made through bookkeeping paid the monthly bills. When my dad passed away our family budget was reduced as well as many of my bookkeeping clients either folded their businesses or dropped off the face of the earth, so needless to say this year I will be living off what I make doing taxes.

So even though I am having trouble getting going this year, I know I must! I share a home with my parents and we all pulled our resources to stay afloat, but now it's mainly my income and what social security my mom gets that keeps us going. I keep telling her it is expensive to live!

I hope everything goes well for you this filing season!

Deb!

[mcb39]

Deb....you have my heartfelt sympathy. I am sure that once we settle down, things will be OK. At least we do have a source of income even if we have to nudge ourselves to get going. Here in the Midwest, so many are out of work totally and things are getting really tough. My husband and sons' business (Used Auto Sales) hasn't written a contract in the last three months. I am hanging on to 2 jobs to help with their bills......and so the spiral continues. And, yet, I am so much better off than many. I count my blessings every day.

[kcjenkins]

One more to add, that I had overlooked. Since Jan. 1, 2009 corporations have been able to file a Form 4466 to recover their estimates of 2008 overpaid taxes. They can do this now, even though they may not file their tax returns until September 2009. In light of the current economic downturn.

[Lion EA]

Deb, do something to make it easier on yourself. Let the answering machine pick up, and along with your hours tell of your father's passing. Or, send out a reminder postcard and mention it. So, you can get it out there; and people will know already when they see you face to face. You get the idea. Whatever will make it easier for you to inform your clients.