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In this issue:
- Homebuyer Tax Credit Extension
- Do your clients need to adjust their withholding?
- Tell us what you think.
- Form starter kits will be mailed soon.
- What's new in TaxTools 2010?
Homebuyer Tax Credit Extension
This month, President Obama signed the "Worker, Homeownership, and Business Assistance Act of 2009," which extends the homebuyer tax credit from the current November 30 deadline to April 30, 2010. The bill also expands the program to include a $6,500 credit for homeowners who have lived in their current home for at least five years and are purchasing a new home.
Income limits for the program have been raised from $75,000 to $125,000 for a single homebuyer, and from $125,000 to $225,000 for a couple. Credits are available on a diminishing basis for taxpayers with income above these limits.
As always, CFS software has been updated to comply with these changes. You can always check our Software Updates page to be sure that all of your CFS programs are updated to the latest version. However, if you have a dedicated high-speed Internet connection such as DSL or cable, most CFS programs can be conveniently set to automatically check for updates. Click "Configuration" on the toolbar, and check the box next to "Check for web updates when program starts."
Do your clients need to adjust their withholding?
According to a recent government report, the Making Work Pay Credit provision of the American Recovery and Reinvestment Act of 2009 could result in more than 15 million taxpayers owing additional taxes. The credit is being advanced through reduced withholding in 2009 and 2010, which may cause taxpayers in certain situations to be underwithheld. In addition, California has cut exemption credits for dependents and, in response to the budget crisis, adjusted state withholding tables to "borrow" an additional ten percent in withholding tax.
CFS W4 Calculator, updated to comply with all of these changes, will accurately calculate the correct number of federal and California withholding allowances to ensure that your clients are not over- or underwithheld.
If you own CFS W4 Calculator, now is the time to use it; if you don't own it, now is the time to buy it. Order W4 Calculator now, and get both the 2009 and 2010 versions for just $89!
Tell us what you think.
Our customer service department strives to address your questions and concerns courteously and efficiently. If you have recently called CFS customer service, we would appreciate it if you would help us continue to do our best by taking a brief online survey. The seven question survey will take as little as a minute of your time, and it might help us improve the way we handle your next call. Please click here to take the survey.
Form starter kits will be mailed soon.
We will soon begin mailing form starter kits to many of our W2/1099 customers. The starter kit contains a sampling of 1096 and 1099-MISC copy A's, blank perforated stock and envelopes. The starter kit is free to customers who renewed their W2/1099 program by May 31st. For customers who did not renew early or who wish to order additional kits, they can be purchased for $39. If you need larger quantities of forms, please order here.
What's new in TaxTools 2010?
The following is a list of new and updated modules to be included in TaxTools 2010:
Client Tax Organizer
This new module generates a tax organizer that can be distributed to clients to gather essential tax preparation information.
Power of Attorney – Representative Statement of Withdrawal,
Power of Attorney – Taxpayer Statement of Revocation
These new forms are used by a representative or a taxpayer to withdraw from or revoke an existing power of attorney (Form 2848 or 8821).
Roth Basis Tracker (updated for 2010)
The purpose of the Roth IRA Basis Tracker is to verify and track contributions, taxable and nontaxable conversions, earnings, and distributions made to Roth IRA accounts. The module has been modified to comply with new rules for 2010. In 2010 you may convert a traditional IRA to a Roth IRA without the current income limitations. In addition, you may elect to spread the taxes over the next two years, i.e. you may pay all the tax due in 2010 or pay half in 2011 and half in 2012.
Why Convert a Regular IRA to a Roth IRA in 2010?
This new module helps determine the benefit of converting a regular IRA to a Roth, for tax years beginning in 2010 and later. Starting in 2010, taxpayers with modified adjusted gross income of more than $100,000 will be allowed to convert a traditional IRA to a Roth IRA. This change applies to all years beyond 2010, and the income taxes due on the 2010 conversion can be spread over two years.
Tax Credit and Deduction Phase-out Calculator
This new module displays general information and calculates the allowable amounts for various tax deductions and credits. A reduced deduction and/or credit due to high income phase-out can be calculated based on the input of parameters such as filing status and federal adjusted gross income.
Order TaxTools now, and get both the 2009 and 2010 versions for just $189!
CFS Customer Service
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