Tax Year 2009
Penalty for Failure to File Income Tax Return
If you do not file your tax return by the due date (including extensions) you may have to pay a failure-to-file penalty. For income tax returns required to be filed after 2008, the failure-to-file penalty for returns filed more than 60 days after the due date (including extensions) is increased. The minimum penalty is the smaller of $135 or 100% of the unpaid tax.
Unemployment Compensation
For tax years beginning in 2009, each recipient of unemployment compensation can exclude from gross income up to $2,400 of the amount received during the year.
Deduction for Credit or Debit Card Convenience Fees
If you pay your income tax (including estimated tax payments) by credit or debit card, you can deduct the convenience fee you are charged by the card processor to pay using the card. The deduction is claimed for the year in which the fee was charged to your card as a miscellaneous deduction on line 23 of Schedule A (Form 1040) (and is subject to the 2% of adjusted gross income floor). Therefore, not everyone will be able to take this deduction.
Mileage Deduction
Standard deduction rate for the cost of operating your vehicle for business use is 55 cents per mile.
Medical and move related mileage is 24 cents per mile.
Charitable related mileage is 14 cents per mile.
Sales Tax
You can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010. A qualified motor vehicle includes a passenger automobile, light truck or motorcycle and has a gross weight rating of 8,500 pounds or less. A qualified motor vehicle also includes a motor home, the original use of which begins with that purchase. The amount of tax you are able to deduct is limited to the tax imposed on the first $49,500 of the purchase price. No deduction is allowed when modified adjusted gross income is equal to or more than $135,000 ($260,000 MFJ). The deduction can be used to increase your standard deduction or you can take it as an itemized deduction.
Student Loan Interest
The amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing joint and your modified adjusted gross income (AGI) is between $120,000 and $150,000. You cannot take the deduction if your modified AGI is $150,000 or more.
For all others, your student loan interest deduction is phased out if your modified AGI is between $60,000 and $75,000. You cannot take the deduction if your AGI is $75,,000 or more.
Home Buyer Tax Rebate
Extension of the first-time home buyer rebate and new tax rebate for existing homeowners.
The new tax rebate is up to $6,500 for existing homeowners who are buying another house. You must have lived in your current home for at least 5 years to qualify.
The first-time buyer rebate is up to $8,000. You cannot have owned a home in the past 3 years.
Other requirements for both include:
Home must be your primary residence
Close of escrow must occur by June 30th and contracts must be signed by April 30th
The home cannot be purchased from a relative
Buyers must live in the home for at least 3 years or repay the rebate
Income for individuals must be less than $125,000 a year ($225,000 for couples). The credit is reduced at the higher end of the income limit.