ATLANTA (AP) – Sept. 1, 2010 – Georgia State University researchers have created an online calculator for small businesses interested in whether they qualify for tax credits under the new federal health care law.

The tool – the first of its kind – can be used by businesses in any state, including nonprofit agencies. Under the law, small businesses with fewer than 25 full-time employees making less than $50,000 could be eligible for tax credits to help cover the cost of insurance for workers.

The calculator was developed by Georgia State in conjunction with the Florida Public Health Institute and the Center for Mississippi Health Policy.

The calculator can be found online at: http://aysps.gsu.edu/ghpc/3807.html

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. Continue reading ‘Frequently Asked Questions About the First-Time Home Buyer Tax Credit’

BY STEPHEN OHLEMACHER
Associated Press

Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time home buyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit. Continue reading ‘Senators agree to extend first-time homebuyer tax credit’

You’ve decided to purchase a home and take advantage of the 2009 First-Time Home Buyer Tax Credit. Here’s what you have to do to get your benefit:

1.Close on your home purchase by November 30, 2009,
2.Ensure that you are a qualified first-time buyer under IRS guidelines,
3.Decide which year to file under, 2008 or 2009,
4.File an amended 2008 return or choose to apply the credit to your 2009 tax return.
Breaking News: Tax Credit Can Be Used on Closing Costs (REALTOR® Magazine).

Deciding When to Apply the Credit

If you want the benefits of your credit as soon as possible:

You might choose to file under your 2008 tax year. Since April 15 has already passed, you would have to file an amendment to your return. However, if you’ve already filed for an extension of your 2008 return, then you can simply claim the credit when you submit your return.

If you anticipate a drop in income next year:

You can wait to claim the credit as part of your 2009 filing. In some cases the value of the credit might be higher, particularly if in 2008 you qualify for only a partial credit because your income is over $75,000 (single) or $150,000 (joint).

Your Next Steps

Once you have determined which year to apply the tax credit, you will need to do two things to claim the credit:

1.Fill out Form 5405 to determine the amount of your available credit, and
2.File an amended return for your 2008 taxes, or wait and apply to credit when you file your 2009 tax return.