Spouses Must Check Name and Number Used on Tax
Returns
The IRS has announced (IR-2000-68) that it is sending letters to 2.4 million taxpayers who filed a joint
return on which the name and identification number for the second spouse listed did not match IRS records.
Those taxpayers, should compare the name and number used on the return with the information on an identification card issued by the Social Security
Administration or the IRS. Without correct names and identification numbers, taxpayers may not be able to claim a personal exemption or the earned income tax credit.
New Law Requires Reports and
Disclosure by Political Organizations
A new law requires section 527 political organizations to file with the IRS an initial notice of their existence, periodic reports on their contributors and expenditures, and an annual return, and requires the organization and the IRS to disclose these documents to the public.
Social Security Administration Acts to Protect Benefits for Families of Troops Serving Under Fire
Military families will not lose valuable government disability benefits because a member of the household has been sent into combat. Jo Anne Barnhart, Commissioner of Social Security, has clarified the Agency’s policies so that individuals receiving Supplemental Security Income
(SSI) disability payments, and Medicaid coverage, can continue to do so even if family income rises due to a mother, father or spouse receiving special combat-related supplements to their military pay.
Expanded Tax Break
Available for 2009 First-Time Homebuyers
This
year, qualifying taxpayers who buy a home before December 1, 2009, can
claim a credit on either their 2008 or 2009 tax returns. They do not
have to repay the credit, provided the home remains their main home for 36
months after the purchase date. They can claim 10% of the purchase
price up to $8,000 or $4,000 for married individuals filing separately.
The
amount of the credit begins to phase out for taxpayers who adjusted gross
income is more than $75,000 or $150,000 for joint fliers.
For
purposes of the credit, you are considered to be a first-time homebuyer if
you, and your spouse if you are married, did not own any other main home
during the three-year period ending on the date of purchase.
The
IRS also alerted taxpayers that the new law does not affect people who
purchased a home after April 8, 2008, and on or before December 31,
2008. For these taxpayers who are claiming the credit on their 2008
tax returns, the maximum credit remains 10% of the purchase price, up to
$7,500 or $3,750 for married individuals filing separately. In
addition, the credit for these 2008 purchases must be repaid in 15 equal
installments over 15 years, beginning with the 2010 tax year.
