The deadline to file your 2008 tax return without penalty is Thursday, October 15th. Here's eight things you should double-check before signing your 2008 return.
1. Check if you're eligible for the recovery rebate credit. This is a one-time-only tax credit available for people who did not receive their economic stimulus payment in mid-2008. Most tax software programs have a worksheet for you to fill out to see if you're eligible for the recovery rebate. To use these worksheets, you'll first need to know how much of the stimulus payment you received. The IRS mailed out reminder notices earlier this year. You can also check on the IRS Web site at How Much Was My 2008 Stimulus Payment?
2. Review your standard deduction or itemized deductions. For 2008 (and 2009) homeowners can take an extra standard deduction for property taxes. If your itemized deductions are only slightly more than your standard deduction, it might make sense to take the standard deduction with the additional amount for property tax, and this in turn can make your state tax refund into non-taxable income for 2009.
3. Review your estimated tax payments and extension payments. If you don't have canceled checks or payment confirmation receipts, you might want to call the IRS at 1-800-829-1040 to ask them to verify the payments that were posted towards your 2008 taxes.
4. Be sure you have all your tax documents, such as W-2s, 1099s, 1098 mortgage statements, and so forth. If you are missing copies of any documents, ask your employer, bank or broker to send you a copy. Or better yet, many financial institutions provide these documents through their Web sites. If you are still missing some documents, call or visit the IRS and ask them for a printout.
5. Self-employed persons should review whether funding a SEP-IRA retroactively for 2008 will yield any tax savings.
6. Investors should review their capital losses carried over from 2007 and make a note of capital losses to be carried over to 2009.
7. Homeowner who are paying mortgage insurance premiums may be able to deduct those premiums as an itemized deduction. These premiums are listed on Form 1098 from your lender.
8. People who have bought a house in 2009 should review whether it will be more beneficial to claim the first-time homebuyer tax credit on their 2008 return or wait to claim it on their 2009 return.
Question: My wife has multiple sclerosis, including leg weakness. She is wanting a safer bathroom shower, walk-in with shower seat. It will cost us around $4,000. I would like to deduct the cost as a medical expense. Do we need to take any additional steps to support its deductibility? Does the cost need to be ammortized, and, if so, over what period of time. Thank you in advance.
All or part of this improvement could be deducted as a medical expense. I refer you to the section on capital expenses in Publication 502 from the IRS. That section includes a worksheet to figure out how much of the expense is deductible. You don’t need to amortize or depreciate this expense.
You are an amateur. For the FBAR disclosure, you list the deadline as October 15th but fail to mention if it must be received by the IRS on that date or postmarked by that date (or just mailed by that date).
These details make up the body of the tax code. But I guess you wouldn’t have any experience with that !!!
The IRS likewise was silent in their Q&As and other announcement whether the deadline meant disclosure had to be postmarked by or received by that date.
William,
If I qualify for the foreign income exclusion by meeting the physical presence test, am I considered a part year resident of the state that I live? Are there different rules for different states?
Can you deduct home improvements like air conditioning, isulation, new floors, kitchen, bath spent about 25000.00 or so. Also can you clothing as a deductible? I am confused several Notary’s in Texas use this. I am scared to do this. Let me know
Thanks