Information You Should Know about your Taxes
Posted In: Special Features
written for Countyline publication and printed in Wisconsin and Illinois Biker Information Guide – fourth quarter 2009 by Tony “The Tax Man” Nazarowski When it comes to doing taxes most people look for as many deductions as possible to pay the least amount of tax. That is a good strategy but I want to make you aware of a few nice deductions that can like magic… be here one year and then ala-ka-zam!… suddenly their gone. 1. You dependent child can give you nice deductions .The dependent exemption, child care expense credits, educational credits for post high school children are a few examples, but a real good one, THE CHILD CREDIT, which can get you up to $1,000 per child disappears the year the dependent child turns 17. You can still claim the exemption but if you child turns 17 at anytime during 2009, you will not get that $1,000 you received in 2008 for the same child. 2. If you divorced after July 2, 2008, and agreed to alternating years of claiming a deduction for a child, with the custodial parent, be aware that now the custodial parent can REVOKE the shared custody agreement and leave you out in the cold. Even if the divorce decree shows alternating years of claiming a dependent child, the custodial parent has the final word. The Non-custodial Taxpayer claiming a shared dependent on their return with a post 7/2/2008 divorce, must include form 8332 Release of Claim to Exemption form, signed by the custodial parent every year to claim the dependency. No other form or written instrument will be accepted by the IRS. 3. To claim The First Time Homebuyers Credit of up to $8,000 you must close on the property no later than 11/30/2009. The IRS will be scrutinizing closing dates for this credit. In the give and take of deductions be aware how each tax year things can change dramatically. Anthony N. Nazarowski is an Enrolled Agent, certified by the Internal Revenue Service, and has been preparing personal and business income tax returns for over 25 Years. He taught a variety of income tax courses for over 15 years and since 2002 has been a guest tax expert on WGN television in Chicago, IL where is known as “Tony the Taxman” as well as various appearances on other television networks and radio programs.