Posts tagged ‘Alternative Minimum Tax’

October 20, 2008

What the $700 billion bailout does for taxpayers

by thoughtfulconservative

A summary follows. More in depth explanation can be found at CNNMoney.com.

  • A quick fix for the AMT to keep many middle-class taxpayers out of the reach of the alternative minimum tax in 2008.
  • Mortgage debt forgiveness, normally taxable income, won’t be. For awhile.
  • A break on education for some people.
  • The sales tax deduction, which expired last year, returns.
  • Homeowners who do not itemize can deduct up to $500 ($1,000 for joint filers) of property taxes in addition to the standard deduction.
  • If you’re 70.5 years or older you can withdraw up to $100,000 from an IRA and donate it to charity, tax-free.
  • In 2009 (they skipped over 2008, says Luscombe) you can qualify for a credit of up to $500 for qualified improvements to make your home more energy efficient.
  • If you were affected by Hurricane Ike or this year’s floods or tornadoes in the Midwest, you may qualify fortax benefits.