Extension of 1st Time Home Buyer's Credit

A House and Senate vote is expected next week on an extension of the $8,000 1st Time Home Buyer's Credit. Expect this to be the LAST extension. The only way credits work is if a sense of urgency is created. Contracts would have to be signed by April 30th and the sale closed by June 30th, 2010. There may also be a provision to give a $6,500 tax break to homeowners who have owned a home in 5 consecutive years of the last 8. More later!

Massachusetts drivers' license reminders

Pam Moore, EA, sent the following:

MA RMV announced a free service to sign-up for driver's license renewal reminders. You may choose e-mail, text, or telephone reminder. There are plans to expand reminders to registrations, etc. Smart way to avoid a fine for driving without a license if you forget to renew! Link:
https://secure.rmv.state.ma.us/RMVReminder/intro.aspx.

Proposed Social Security One-Time Payment

Obama asked Congress to approve $250 payments, in 2010, to more than 50 million Social Security recipients who will not get a cost-of-living increase in 2010. The payments would also go to Veterans, Railroad Retirees, and Public Employee retirees who don't receive Social Security.

New Car Sales and Excise Tax Deduction for 2009

The IRS wants you to know:

Taxpayers purchasing new cars, light trucks, motor homes or motorcycles, may qualify for a special sales and excise tax deduction on 2009 tax returns.

New autos must be purchased in 2009 and before January 1, 2010. The deduction is limited to taxes and similar fees paid on up to $49,500 of purchase price. There are income limits to qualify for the deduction.

This deduction is available even if you don't itemize!