American Recovery and Reinvestment Act Details As They Unveil ...
From: Maco & Associates, LLC

February, 2009
American Recovery and Reinvestment Act of 2009

Details of the recently signed American Recovery and Reinvestment Act signed into law on February 17, 2009 continue to emerge. We know how very busy you are, but want to keep you abreast of the news as it breaks, so you may plan!
First -Time Homebuyer Credit
2008 and 2009 rules
First Time Homebuyer Credit The 2008 First-Time Homebuyer credit provided for first time homebuyers to take a credit of 10% of the purchase price up to a maximum credit of $7,500. These taxpayers are required to repay the credit over 15 years beginning with their 2010 return. This was part of the Housing and Economic Recovery Act of 2008 and is applicable to Homebuyers who purchased a home between April 8, 2008 and July 1, 2009.

To make things confusing, we now have the First Time Homebuyer Credit of 2009 as part of the American Recovery and Reinvestment Act of 2009. Those first time homebuyers who purchased a home after December 31, 2009 are allowed an $8000 credit and are not required to repay the credit unless they do not use the home as a principal residence for at least 36 months.

Call or email if you have any questions about this confusing twist in legislation!
Social Security Stimulus Payments
One time $250 Social Security Payment
Social SecurityPresident Obama recently signed the American Recovery and Reinvestment Act of 2009.  This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits. The Social Security Administration expects that all who are entitled will receive their payments by late May. No action is required by recipients. Any questions, contact the Social Security Administration.
Some Other Highlights You May Be Interested In

  1. Suspending tax-year 2009 required minimum distributions from IRAs and qualified plans.
  2. Extending bonus depreciation and first-year expensing limits through 2009
  3. Creating a new "American Opportunity" tax credit for college costs
  4. Adding computers and internet access as eligible expenses for Section 529 plan distributions
  5. Enhancing credits for energy-efficient home improvements
  6. "Patching" the AMT for 2009

We have a few new offerings this tax season:

Free E-filing: Beat the mail and get your return filed more quickly than ever before.

Audit Shield: Our "Better Safe than Sorry" protection plan which will pay up to $2500 in penalties, etc. imposed by the IRS due to an error on your part on forgetting to give us a critical piece of your income information). The plan is $24.95 and is added to your invoice, should you choose to use it

We will work diligently to keep you abreast of the changing legislation - particularly the impact of Obama's proposed budget which will particularly hit those making in excess of $250,000 (with potential tax hikes and capital gains (who has those now) taxes much higher).

From All of Us at
Maco & Associates, LLC
Telephone: (610)489-7215
4183 Ironbridge Drive
Collegeville, PA 19426
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In This Issue
First-Time Homebuyer Credit
Social Security Stimulus Payments
Other Highlights
Quick Links

Tax Law Changes
In the next few months, we will see a lot of changes as the administration attempts to stimulate our economy. We will send you highlights and you may visit our blog for information.
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