YEBies Presents: Weekly Tax Tips For The Win (WTTFTW) Week 2

Weekly Tax Tips For The Win

(WTTFTW)

We're back with the 2nd installment of tax tips. This is the time of year when the dealers put money in their mom's bank account to get cars in her name and say its her "income tax refund". This week I am going to discuss the tax saving and benefits that were put in place this year due the Economic Stimulus Package (remember that?).

Tax Tip 1: First-Time Home Buyer Tax Credit:

This is probably the most well known tax credit that came out of the stimulus package so I won't spend to much time on it. This is just a reminder for those who purchased a house and decided not to amend their 2008 tax return. Don't forget to claim your tax credit on your 2009 return. Visit this website for all the housing tax credit you need. Federal Housing Tax Credit

Tax Tip 2: New Car Sales Tax Deduction:

Another creation from the Economic Stimulus package is this New Car Sales Tax Deduction. If you purchased new car (in this case new means you were the first owner of the car) after February 16th, 2009 you are allowed to take a deduction for the state sales tax paid on your tax return for 2009. As there is with every tax law, this deduction as a few limitations. Here they are:
1) The deduction is only for sales tax paid on a purchase price up to $49,500. Meaning if you purchased a car for $60,000, the amount taxes paid on the additional $10,500 ($60,000 - $45,000) will not be deductible on your tax return.
2) Single taxpayers with income over $135,000 are not be eligible to take this deduction. The income limitation is $260,000 for married filers.
Check out this Q & A from the IRS Website for more information here.

Tax Tip 3: American Opportunity Tax Credit

The Economic Stimulus Package created this tax credit that replaces the traditional Hope Tax Credit for 2009 and 2010. Individuals that make less than $80,000 can receive a tax credit of $2,500 for tuition and qualified educational expenses paid in 2009. In order to receive this credit, you will have had to spend over $4,000 on tuition and expenses in the year. For more information, view this write-up from the IRS here.

As always, if you have any questions, comments, or concerns, leave a comment and I'll respond according.

Peace,
Your Resident Taxpert

YEBies Birthday: Julian Bond

On this date in 1940 Julian Bond was born in Nashville, Tennessee. Bond would go on to attend Morehouse College where he would help found the Student Nonviolent Coordinating Committee (SNCC). After college along with Dr. King, Bond helped as a leader in the American Civil Rights Movement. Bond was also elected to both houses of the Georgia Legislature, where he served a total of 20 years.

Sade – “Soldier Of Love” [Video]

Corinne Bailey Rae x Soundcheck Preview [Video]

Corinne Bailey Rae recently filmed a Soundcheck interview session for the January 26th release of her new album The Sea. In this preview clip, she speaks on her favorite recent album (Dear Science) and being influenced by the music of The Rolling Stones, Sly Stone & Jimi Hendrix as well as the possibility of reinterpreting their music for album bonus tracks. Corinne’s full Soundcheck will release on 1.15 at Soundcheck.walmart.com/Corinne-Bailey-Rae

The Return Of Gemstones (Video)

Lupe’s old wingman is back. New material coming very soon.

Who Is Nneka? (Video)

Nneka speaks of what inspires her and discusses Concrete Jungle, her first album to be released in the US on February 2, 2010.

We The People (Trailer)

An expose of Artists & Community Activists living in America who express their views on the current situation of our nation

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R.I.P. Teddy Pendergrass (March 26, 1950 – January 13, 2010)

Theodore DeReese Pendergrass Sr will forever be one of the greatest soul singers ever. The Philadelphia native had a amazing career with Harold Melvin & the Blue Notes and even better one solo. His death from colon cancer should also be a sign to black men to go get test because we are the highest percent of new cases in America.

Wyclef Speaks On The Haiti Earthquake Relief

YEBies Birthday: John Singleton

On this date in 1968 film director, screenwriter, and producer John Singleton was born in Los Angeles, California. Singleton has given us movies such as Boyz N the Hood, Poetic Justice, Higher Learning and Baby Boy. A lot of his films have taken place in the inner-city of California or have covered their problems. He has also branched out to "mainstream" films as well with the likes of 2 Fast 2 Furious and Four Brothers. Singleton also directed the video for Michael Jackson's 1991 single Remember The Time.

Pac Div – Young Black Male (Boyz N The Hood Version)

YEBies Presents: Weekly Tax Tips For The Win (WTTFTW)

So the whole idea behind this website when it first began was to bring some type unity among Young, Educated, Blacks across the globe one post at a time. Almost a year and a half later, I'm not sure if I'm actually even achieving this goal with my content. So in efforts to do a better job this year on maintaining a better balance of pop culture, news, and things WE need to know, I got another Y.E.B. (who shall remain anonymous) to give us some weekly tips on how to make the most of our tax returns this year. Our goal with each update is to educate and inform you with the most current and reliable tax information in order to maximize your return this year. Please feel free to pass these posts and tips along to others as they come. As tax season picks up it may become harder to make this a weekly post, but we will do our best to stay as consistent as possible with the knowledge.

PEACE & LOVE,

-Vito The Y.E.B.

Weekly Tax Tips For The Win

(WTTFTW)

Its time to start preparing to file your 2009 taxes, while you are scrambling around trying to find kids to claim, I'm here to help you get a bigger income tax refund LEGALLY. This first installment of tips is very general and will be the ground work for that return you have been looking for from Uncle Sam

Tax Tip 1: Know Your Filing Status
The three most common filing statuses are Single, Head of Household, and Married. The Married filing status is pretty self-explanatory, so let's focus on the distinction between filing Single or Head of Household. Filing as a Head of Household allows you to take advantage of a lower tax rate and higher standard deduction than if you file as a single tax payer. To qualify as a head of household filer, you must meet these 3 requirements; 1) You are unmarried on the last day of the year, 2) You paid more than half the cost of keeping up a home for the year and, 3) A “qualifying person” lived with you in the home for more than half the year. Follow this link "QP" to find out who is a qualifying person.

Tax Tip 2: Take Advantage of Tax Credits
Tax credits are extremely favorable because they reduce the amount of tax you owe dollar for dollar. Specific Tax Credits will be addressed in future weeks, however take a look at common Income Tax Credits here. Leave questions about specific tax credits in the comment section.

Tax Tip 3: Understand the Charitable Deduction
It is common knowledge that charitable contributions made during the year can be deducted on your tax return however it really is not that simple. Only taxpayers that "itemize" their tax deductions are able to take charitable deductions on their tax return as opposed to taxpayers that take the standard deduction. Additionally, most taxpayers only take the charitable deduction for cash contributions made during the year, although property such as clothing and furniture should also be included. Unfortunately, only donations to charitable organizations qualify for the charitable deduction so the hand-me-downs you gave to your cousin will not acceptable.

That's it for the first installment of these weekly tax tips. Leave any questions, comments, future topics you would like addressed or criticism in the comment section.

Until Next Time,

Your Resident Taxpert

(Our tax expert here at YEBies works for a big 4 accounting firm and prepares tax returns for individuals, partnerships, corporations, trust, and estates.)

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HBCU's Losing $85 Million Starting 2010-11 School Year

President Barack Obama's education budget for the upcoming year included major spending increases in many areas, but didn't include an extra $85 million that black institutions have received annually for the past two years thanks to a 2007 change to the student loan laws. The two-year-old program had provided direct funds to federally recognized HBCUs. A program supporting Native American tribal colleges is also seeing decreased funding, while one for institutions serving large numbers of Hispanic students would see an increase from $93 million to $98 million. The 105 federally recognized HBCUs make up just 3 percent of U.S. colleges but account for nearly 20 percent of undergraduate degrees awarded to blacks.

South Africa's President Zuma Marries 3rd wife

South African President Jacob Zuma married his third wife Tobeka Madiba on Monday at his rural homestead of Nkandla in a traditional Zulu ceremony. Multiple marriages are allowed in South Africa and form part of Zulu culture, the largest tribal group in the country. However, polygamy remains a subject of contentious national debate. The 68-year-old president and his fifth wife Tobeka, 37, already have three children together.

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Today In Black History : The Wiz

On this date in 1975 The Wiz opened on Broadway. The show would go on to become the longest running black musical on Broadway with 1,672 shows. The original 1975 Broadway production won seven Tony Awards, including Best Musical. The musical starred Stephanie Mills as Dorothy, Hinton Battle as Scarecrow, Tiger Haynes as the Tin Woodman, Ted Ross as Lion, Dee Dee Bridgewater as Glinda, André DeShields as the Wiz and Mabel King as Evillene, the Wicked Witch of the West and Clarice Taylor as Addaperle, the good witch of the North.