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Tax Law Changes
10/17/2008
Clarification of the Uniform Definition of a Qualifying Child
Public Law 110-351
HR 6893
On October 7, 2008, the President Signed into law H.R. 6893, the Fostering Connections to Success and Increasing Adoptions Act of 2008. The
law amends the Social Security Act to allow state plans to provide
assistance payments to grandparents and other relatives who have
assumed legal guardianship of children. The law also amends the
Internal Revenue Code under the rules that define a qualifying child
for purposes of various tax provisions. The following is a summary of
tax provisions found in the law.
Uniform Definition of a Qualifying Child
The uniform definition of a qualifying child is used to describe a
qualifying child for purposes of the following tax provisions:
- Dependency exemption [IRC §152(c)].
- Child tax credit [IRC §24(c)].
- HOH filing status [IRC §2(b)].
- Credit for child and dependent care expenses [IRC §21(b)(1)].
- Earned income credit [IRC §32(c)(3)].
Beginning in 2009, the following rules are added to the uniform
definition of a qualifying child:
Rule #1) A qualifying child must be younger than the taxpayer claiming the person as a qualifying child.
Rule #2) A qualifying child cannot file a joint return with a spouse. Exception. A
qualifying child can file a joint return to claim a refund if no tax
liability would exist for either spouse had they filed separate
returns.
Rule #3) For purposes of the child tax credit only, the taxpayer must be allowed to claim the child as a dependent.
Rule #4) If
the parents of a child are allowed to claim the child as a qualifying
child but no parent actually claims the child as a qualifying child,
then the child may be claimed as a qualifying child of another
taxpayer. This rule only applies if the adjusted gross income of the
other taxpayer is higher than the highest adjusted gross income of any
parent of the child.
10/23/2008
Per Diem Rates
The standard per diem rates for travel within the Continental United
States (CONUS) effective October 1, 2008 is $39 for meals and
incidental expenses (M&IE), and $70 for lodging.
11/25/2008
IRS Announces 2009 Standard Mileage Rates
Rev. Proc. 2008-72
The Internal Revenue Service today issued the 2009 optional standard
mileage rates used to calculate the deductible costs of operating an
automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2009, the standard mileage rates for the use of a car
(including vans, pickups or panel trucks) will be:
- 55 cents per mile for business,
- 24 cents per mile for medical or moving,
- 14 cents per mile for charitable, and
- 21 cents per mile for business depreciation.
12/23/2008
Worker, Retiree, and Employer Recovery Act of 2008
H.R. 7327
Public Law 110-458
Joint Committee Technical Explanation of H.R. 7327
The President signed into law H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008, on
December 23, 2008. The law was passed by Congress as a result of the
continuing bad economic news. The law suspends the required minimum
distribution (RMD) rules for IRAs and other retirement accounts,
provides pension plan funding relief, and technical corrections to the Pension Protection Act of 2006.
In addition, it is expected that another stimulus bill will be passed
before the new President takes office, as well as other pension related
provisions intended to help retirement plans.
Tax Refund Schedule
The tax refund schedule is provided as a PDF courtesy of http://www.irs.gov/efile.
Please click the link below to open the PDF in your browser. You will
need the free Adobe Reader application to view it. If you don't have
it, you can download it from Adobe's website.
FAQ
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