from Equifax February 2010 Newsletter

 
The votes are in! Our Equifax Facebook fans voted on what newsletter topic they wanted, and the winner was tax changes that could impact your 2009 return. So whether you're at home, on the job, in the classroom, on the road or making efforts to be more charitable or environmentally friendly, you could be eligible for tax write-offs you didn't even know about!

While April 14th is still a couple of months away, nothing takes the stress out of tax season like preparing in advance. Plus, by getting a head start, you can take the time to discover what tax credits, write-offs, and changes apply to your 2009 return - potentially helping you save! Discover new tax credits - as well as changes to existing ones - in this helpful article.

At Home:
Incredibly popular in 2009, the first-time homebuyer tax credit allowed new, first-time homeowners who closed on their homes in 2009 to receive a credit of up to $8,000 on their 2009 return. To be eligible, you cannot have owned a residence in the United States in the previous three years. Plus, here's some great news for those of you still looking at homes: this credit has been extended into 2010. If you commit to purchase a home before April 30, 2010 and close before June 30, 2010, you can still receive this tax credit and elect to write it off on your 2009 or 2010 return.

A similar tax break for existing homeowners was established offering credits of up to $6,500 on 2009 returns for purchasing a replacement home in the same year. This was extended through the first half of 2010, so if you close on a replacement home by June 30, 2010, you can write off up to $6,500 on your 2009 or 2010 tax return. Income limits were also expanded for both of these credits; that means homebuyers who file as single or head-of-household can claim the credit in full if their modified Adjusted Gross Income (AGI) is less than $125,000 ($225,000 for those filing jointly).

On The Job:
If your job offers a 401(k) plan, the maximum employee contribution level has increased in 2009 from $15,500 to $16,500. This also applies to similar retirement plans such as 403(b)s, the federal Thrift Savings Plan and more. If you are over 50, you can also contribute an additional $5,500 for a maximum of $22,000. These changes are slated to remain in place for your 2010 return as well.

For 2009, Congress has initiated a Payroll Tax Credit that credits workers 6.2% of their earned income with a cap of $400 for single filers and $800 for those filing jointly. Rather than receiving a rebate check, those eligible for the credit will receive it in advance through lower income tax withholding in their paychecks. This payroll tax credit will continue through 2010's return.

In The Classroom:
Whether you or a loved one is attending college or is involved in educating, this year brings great write-offs in terms of the classroom. In terms of college tuition, the Hope credit is being replaced for 2009 by a new credit of up to $2,500 per student for each year of four academic years. It also covers the cost of textbooks. This credit begins to phase out for single filers with AGI over $80,000 and joint filers with AGI over $160,000. Similarly, 2009 brought the ability to tap 529 College Savings Plans tax-free in order to pay for a computer or Internet access. Be sure to keep this in mind in next year's return, as this credit will also be effective for your 2010 return.

If you are an educator, you should be aware of the Educators Deduction available only in 2009. For any classroom supplies purchased with their own funds, educators may deduct up to $250.

On The Road:
If you purchased a new vehicle in 2009, you can add the sales tax you paid to your standard deduction - even if you don't claim sales taxes as itemized deductions. Eligible purchases include cars, motor homes, light trucks and motorcycles purchased after February 16, 2009 and before January 1, 2010. Only sales tax paid on the first $49,500 of the cost qualifies, and this credit phases out between $120,000-$130,000 AGI for single filers and $250,000-$260,000 for couples.

Going Green:
Tax credits certainly favor efforts to make your home more energy efficient. You can receive a credit of up to 30% of the amount spent to make energy-efficient improvements to your home. There is a cap of $1,500 in a two-year period, and applies to qualified skylights, windows, outside doors, biomass fuel stoves, high-efficiency furnaces, water heaters and central air conditioners.

You can also receive a credit on up to 30% of the cost of installing energy-efficient property improvements such as solar water heating equipment, solar electric equipment, geothermal heat pumps or small wind turbines on your primary or secondary residence. This credit is unlimited but fuel cell property cannot extend beyond $500 per half-kilowatt capacity.

When You Give:
2009 marks the last year that IRA owners aged 70½ and older can donate up to $100,000 of their IRAs to charity without having to report the withdrawal as income and subsequently deducting the donation as a charitable contribution. These deductions are not affected or limited by the Adjusted Gross Income cap on charitable contributions or the itemized deduction phaseout. When donating in this way, the amount counts toward the owner's required minimum distribution.

We hope our quick overview of important tax breaks and changes to your 2009 return was helpful, but remember that it's only a brief guide; please consult a tax or financial advisor to see if you qualify for these various tax credits.

 The U.S. Small Business Administration today released a proposed rule aimed at expanding federal contracting opportunities for women-owned small businesses (WOSB).  The proposed rule is available for public comment for 60 days.

The proposed rule is part of the Obama Administration's overall commitment to expanding opportunities for small businesses to compete for federal contracts, in particular those owned by women, minorities and veterans.  This proposed rule identifies 83 industries (call the WBCNA for a copy of the 83 industries) in which WOSBs are under-represented or substantially under-represented in the federal contract marketplace.  This rule is aimed at providing greater opportunities for WOSBs to compete for federal contracts, while achieving the existing statutory goal that 5 percent of federal contracting dollars go to women-owned small businesses. 

"Women-owned small businesses are one of the fastest growing segments of our economy, yet they continue to be under-represented when it comes to federal contracting," said SBA Administrator Karen Mills.  "Across the country, women are leading strong, innovative companies, and we know that securing federal contracts can be the opportunity that helps them take their businesses to the next level, expand their volume and create good-paying jobs.  This proposed rule is a step forward in helping ensure greater access for women-owned small businesses in the federal marketplace."

The creation of a rule to increase federal contracting opportunities for WOSBs was authorized by Congress in 2000.  Since that time, SBA took a number of steps to study and analyze the market, including looking at participation by women-owned small businesses across all industries. Various draft rules were made available for public comment in prior years, but the Obama Administration chose last year to draft a new, comprehensive rule, based on the analysis of the prior studies and on all the questions and comments previously received.

Some of the components of the proposed Women-Owned Small Business rule include:

The public may submit comments to this proposed rule up until close of business on May 3, 2010, to www.regulations.gov, where they will be posted after 4 p.m. EST today, or by mailing them to Dean Koppel, Assistant Director, Office of Policy and Research, Office of Government Contracting, U.S. Small Business Administration, 409 3rd St. SW, Washington, DC  20416.   Please reference RIN 3245-AG06 when submitting comments.

Think your company has a potential improvement technology for unmanned aircraft systems (UAS) - either air vehicles or ground control systems?   

Now is your opportunity to inform the Army UAS Project Office.   

Appointments are available during the UAS Technology Forum for you to make brief presentations about technologies related to future payloads, sense and avoid systems, ground systems, and air vehicles. To schedule your confidential appointment contact Jennifer Perritt, UAS Technology Integration Liaison, at (256) 876-5515, jennifer.perritt@us.army.mil  If you send an email, please follow up with a phone call to ensure it was received.

Date for Appointments:  Thursday, March 18
Length of Appointment:  15 minutes maximum
Location: Von Braun Center, during the AUVSI Pathfinder Symposium

Note:  All presentations must be about technologies that have achieved a Readiness Level of 5; the maximum number of presentations that will be scheduled for any one company is two.

The official solicitation notice of this opportunity can be found under Solicitation Number W58RGZ_UAS_TECHNOLOGY_FORUM on FedBizOpps at:
https://www.fbo.gov/index?s=opportunity&mode=form&id=9996b3ef5f40991122bc721b80ef123d&tab=core&_cview=0