by NFS | Jan 25, 2010 | Archives

WINNERS of the FREE INCOME TAX PREP at the Original Wedding Expo
http://ping.fm/251eG

Ten Things You Should Know about the Making Work Pay Tax Credit

by NFS | Jan 25, 2010 | Archives

Many working taxpayers are eligible for the Making Work Pay Tax Credit, a provision created by the American Recovery and Reinvestment Act in early 2009.

Here are 10 things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.

1. In 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns. 
2. For taxpayers who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes. 
3. Taxpayers receiving less than the full amount of the allowable credit through reduced withholding will be entitled to claim any remaining credit when they file their tax return. 
4. The amount of the credit actually received during 2009 in the form of reduced withholding will be reported on your 2009 tax return. Taxpayers who do not have taxes withheld by an employer during the year can claim the credit on their 2009 tax return filed in 2010. 
5. Taxpayers who file Form 1040 or 1040A will use Schedule M, Making Work Pay and Government Retiree Credits to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit. 
6. Taxpayers who file Form 1040-EZ will use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Tax Credit. 
7. In 2010, you may notice that your paychecks are slightly lower than in 2009. The slight decrease may be because of the Making Work Pay Credit. Most of the credit for wage earners is distributed through reduced withholding. The credit – which was spread out over nine months last year – is being spread over 12 months this year. A little less credit in each paycheck means slightly higher withholding. But don’t worry, in the end it all adds up. 
8. Certain taxpayers should review their tax withholding to ensure enough tax is being withheld in 2010. Those who should pay particular attention to their withholding include: married couples with two incomes, individuals with multiple jobs, dependents, pensioners, Social Security recipients who also work, and workers without valid Social Security numbers. Having too little tax withheld could result in potentially smaller refunds or – in limited instances – small balance due rather than an expected refund. 
9. To ensure your current withholding is appropriate for your individual situation, you can review Publication 919, How Do I Adjust My Tax Withholding? You can also perform a quick check of your withholding using the interactive IRS Withholding Calculator on IRS.gov. 
10. If you find you need to adjust your withholding, submit a revised Form W-4, Employee’s Withholding Allowance Certificate to your employer.

A New Option for Your Federal Tax Refund: Savings Bonds

by NFS | Jan 22, 2010 | Archives

If you are receiving a federal tax refund from the Internal Revenue Service, you can choose to use that money to purchase U.S. savings bonds.

Here are the top six things you’ll need to know about using your federal refund to purchase savings bonds.

1. You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds.

2. The total amount of saving bonds purchased must be a multiple of $50. Additional money over the specified amount must be deposited into another financial account – such as a checking or savings account.
3. The bonds will be issued in your name. For married taxpayers filing a joint return, the bonds will be issued in the names of both spouses.
4. You will receive the U.S. savings bonds in the mail.
5. You normally select this option by filing Form 8888, Direct Deposit of Refund to More Than One Account.
6. Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.

For more information about the U.S Savings Bond refund option, please ask when I am working on your return or give me a call at 800-560-4NFS.

Tips for Providing Earthquake Relief to Haiti

by NFS | Jan 21, 2010 | Archives

Many individuals, businesses and charitable organizations wish to provide assistance to the victims of Haiti’s recent earthquake. The IRS has information on the IRS website on how to provide assistance to victims through a charitable organization.

Contributions to domestic tax-exempt, charitable organizations that provide assistance to individuals in foreign countries qualify as tax-deductible contributions for federal income tax purposes, provided that the U.S. organization has control and discretion over the use of funds. Donors should ensure that they make contributions to qualified charities. Use the Search for Charities function on the IRS website to see if the charity you intend to support is a qualified charity listed in IRS Pub. 78. Certain organizations, such as churches or governmental organizations, may be qualified to accept charitable contributions even though they are not listed in Pub. 78.

The House has passed legislation allowing taxpayers to assist victims of the earthquakes in Haiti by allowing a deduction on their 2009 tax return for charitable contributions made in 2010. The Senate has similar legislation pending. NATP is monitoring this legislation and will update you when it is signed into law.

FREE INCOME TAX PREP – This weekend at the Original Wedding Expo

by NFS | Jan 20, 2010 | Archives

Northeast Financial Strategies, Inc (NFS) will be exhiting a booth at the Original Wedding Expo this coming weekend in Marlboro, MA. The show runs from 11am-3:30pm on Saturday & Sunday (01/23-01/24)

Here is the official website…
http://originalweddingexpo.com/default.cfm

While sampling cakes and caterings, and entering to win some great trips, you should stop by our booth (#43) for a chance to win FREE INCOME TAX PREPARATION!! (And even pick up some great discounts and giveaways!!) We will be giving away SIX (6) FREE TAX RETURNS and some great guides for new couples and ideas on life insurance and budgeting.

Hope to see you there!