Sturges, pehling & Associates

Practicing in Lake County since 1978

Tax services

Get your Refund as Quickly as Possible
In these difficult economic times, taxpayers will want their refunds as soon as possible. You will get your refund in about half the time if you eFile, rather than filing a paper return. Also, consider direct deposit-- you’ll receive your refund much faster than waiting for a check by mail. Sturges, Pehling and Associates can assist you to receive your refund in the least amount of time.

 

Unemployment Insurance and Your Income Taxes
According to the Labor Department, 2.6 million jobs were lost in 2008, and the unemployment rate now stands at 7.2% (as of January 2009). Taxpayers must remember that Unemployment compensation is taxable on federal and most state tax returns. If you worked for just part of the year, the IRS still requires anyone who earned at least $8,950 from an employer (if you're single and under 65 years old), or made at least $400 if you're self employed, to file a tax return.

 

Stock Market Losses Must be Reported

During the last quarter of 2008 the stock market plummeted, causing retirement accounts,  401(k)s, and other investments to drastically lose value. Remember, if you sold stocks at a loss, your losses must be reported. Sturges, Pehling and Associates can implement a variety of strategies to minimize loss.

 

Recover your Economic Stimulus Payments
If you did not qualify for the economic stimulus payment based on your income—but then you lost your job in 2008-- you may be able to recover the payment this year when you file your 2008 taxes. Additionally, if you directly deposited your economic stimulus payment into a tax-favored account, you can withdraw the payment by the due date of your 2008 income tax return without tax or penalty.

 

Retirement Accounts

Taxpayers can reduce their taxable income by contributing to a traditional IRA or other plan, or contributing to a traditional IRA. For 2008 the maximum IRA contribution is $5,000. For those over 50 the maximum contribution is $6,000.

 

California Mortgage Forgiveness Debt Relief
The California mortgage forgiveness debt relief law was enacted after many taxpayers had already filed their 2007 tax returns. Some taxpayers who filed their 2007 tax returns may have overpaid their 2007 taxes. Taxpayers can obtain the mortgage forgiveness debt relief by filing refund claims on amended state returns.

 

Updated Alternative Minimum Tax Exemption Levels
For tax-year 2008, Congress raised the alternative minimum tax exemption to the following levels:
-- $69,950 for a married couple filing a joint return and qualifying widows and widowers
-- $34,975 for a married person filing separately
-- $46,200 for singles and heads of household

 

First-Time Homebuyers Tax Credit
Available for a limited time, first time homebuyers should begin planning to take advantage of a new tax credit. The credit—which reduces a taxpayer’s tax bill or increases the refund-- applies to home purchases after April 8, 2008, and before July 1, 2009. The credit operates much like an interest-free loan because it must be repaid in equal installments over a 15-year period. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return.

 

 

3385 White Oak Way   |   Kelseyville, CA 95451   |   Phone: 707-279-1188   |    Alt. Phone: 707-279-4259 

The Soda Bay CPA

The Internal Revenue Service is constantly releasing reports of new tax cuts, new tax regulations, new rules, laws, court decisions, and more-- it is our job to keep our clients informed of these changes. We also encourage clients to utilize any tax credit and/or deduction to increase a refund or reduce a tax bill. Additionally, we urge clients to consider the tax ramifications of any life changes that may have occurred during the tax year.

The best way to maximize tax savings is to meet with your accountant regularly to discuss how new tax laws, credits, and deductions can apply to your circumstances. We recommend that both new and established clients meet with our staff at least annually to discuss your financial situation and create a tax plan. During our consultation we will identify the best strategy to minimize your tax liability.

 

          
           Tax Services We Provide:

           · Exempt Organization Tax Return

           · Corporate Tax Return

           · Individual Income Tax Return

           · Trust & Partnership Returns

           · IRS Audits

Sturges, Pehling & Associates

3385 White Oak Way
Kelseyville, CA 95451
(707) 279-1188
(707) 279-4259

Struges, Pehling & Associates  Tax Tips for 2008-2009