Probably the thing that most people are asking about is the "stimulus" payment.  It's really called the "Making Work Pay Credit."  For most people, we'll have a new form called a Schedule M.  Single people should get a $400 credit and Married couples should receive $800.  (Unless of course you are a dependent, made too much money or received a $250 economic recovery payment.)  And don't get excited about getting an extra $400 in your return, the government changed the withholding tables during the tax year so you technically already got the money. 

   What I mean is, if everything about your tax return is that same as last year, and you normally get a $300 tax refund, you're still going to get a $300 tax refund, not $700.  The $400 tax credit will be offset by $400 that wasn't withheld from your paycheck throughout the year.

                                   Schedule M  

   Another new  form for this year is Schedule L.  This is for people who don't itemize their deductions, but pay real estate taxes, purchased a new car this year, or have a net disaster loss. It's sort of like taking the standard deduction with a kick.  If you  file a Schedule A, then you won't need the L, it's just for people who normally wouldn't itemize their deductions.

                                   Schedule L 

     You may have noticed that the IRS now has added L and M to it's line up of 1040 schedules A,B,C,D, etc.  Any guesses on what the next new schedule will be called?  

   Since we're talking about schedule names, I have a piece of trivia for you:  How did the IRS come up with the name Form 1040?  It's because it's the 1,040th IRS form.  (Yes, really.)

   The IRS has recently issued it's report on new preparer regulations.  It's 57 pages long, but the bottom line is that all tax preparers should have a preparer ID number, take training, and pass a competency test which should begin in 2011. 

     As an Enrolled Agent, I've already passed twelve hours worth of IRS competency tests, I take at least 30 hours of training every year, and I have three IRS ID numbers for different functions that I perform.  Now, over the next few weeks, you're going to hear a lot of news stories about how any idiot can hang out a shingle and prepare tax returns.  (At least, that's what I read in the paper the other day.)   Hopefully, the new regulations will weed out the incompetent folks in the industry, but in all fairness, that are a large number of people who prepare tax returns who are ethical and competent (even those who work for other companies.) 

   In the meantime, if you're concerned about your preparer's competency, then it might be time to consider an EA.  (Like me, yes, that's a plug.)

                       

                       What is an Enrolled Agent? 

 

   If you actually click on the site and read about how Enrolled Agents have been around since the Civil War, I want you to remember that contrary to what my young niece thinks, I personally was not around back then.

 

   Starting a new business?   Or maybe your business is established but growing.  The IRS has a new video classroom with some great information.  You can take the whole course or just take the modules that apply to you. 

   Despite the lack of car chases,  explosions, or George Clooney, the videos are pretty good and worth a look.

                     Virtual Small Business Workshop

 

Important Small Business Deadlines:

February 1:  you must furnish forms W-2 to employees who worked for you in 2009.  Deposit any FUTA tax owed through December.  File 2009 forms 940, 941, 943, 944 and/or 945 if you did not deposit all taxes when due.

February 10:  File your 2009 forms 940 etc, on this date if you paid all your payroll taxes on time.

February 16:  1099-MISC forms must be issued to recipients