Do you have questions about the economic stimulus payments?  Did you miss the Oct 15 deadline to file?  Can you still file anyway? Here are the top five questions currently being asked about the stimulus payments.

Address Change
1. I have moved since filing my 2007 tax return. How will my payment reach me?

A. Filing Form 8822, Change of Address, with the IRS and a change of address notice with the U.S. Postal Service will help ensure that any mail from the IRS, including your stimulus payment check, is sent to your new address. If the check has already been mailed and you did not provide the IRS with an updated address, the check will most likely be returned to the IRS. You may call the IRS at 1-866-234-2942 to provide your new address so that steps can be taken to have the check reissued.

Payment Timing
2) When will I get my stimulus payment?

A. It will generally take 8-12 weeks after you file your return to get your stimulus payment.

The IRS has already issued stimulus payments, both direct deposits and paper checks, for most returns filed by April 15. The IRS will continue to issue payments through 2008 for returns filed after April 15. Please allow 8-12 weeks after filing your tax return before checking on the status of your stimulus payment. To check on the status of your stimulus payment, you may visit Where’s My Stimulus Payment?or call the toll-free Rebate Hotline at 1-866-234-2942.

3) It has been more than eight weeks since I filed my return and my payment has not arrived. Can the IRS trace my payment to find out what happened to it?

A. Yes. If it has been more than eight weeks since you filed your return and your payment has not arrived, please visit an IRS Taxpayer Assistance Center or call the toll-free Rebate Hotline at 1-866-234-2942. A list of all Taxpayer Assistance Centers in your state is available at Contact My Local Office.

4) I heard that the IRS has finished sending the stimulus payments. Is it too late to for me to claim mine?

A. If you missed the Oct. 15 deadline for filing an income tax return for a economic stimulus payment, don’t worry. You can receive a payment in 2009 by filing an income tax return when the filing season opens in January. The IRS will have more information shortly.

5) I filed after April 15 and the payment date for my Social Security number has passed. How long will it take for me to get my stimulus payment?

A. It will generally take 8-12 weeks after you file your return to get your stimulus payment.

truetaxfacts.com will continue to provide updates on important information regarding the IRS and the economic stimulus payments. 

source: irs.gov

In these troubling times we need all the help we can get.  But did you know the IRS may be able to help you during these economically challenging times?  Here are 10 things to know”. 

1. Recovery Rebate Credit: If you didn’t get an economic stimulus payment this past summer and didn’t file a tax return, you may be eligible for the Recovery Rebate Credit . See IRS.gov for details.

2. The Alternative Minimum Tax has been ‘PATCHED”. For 2008, the exemption amounts are $69,950 for married couples filing jointly and $46,200 for single individuals . More information is available at IRS.gov.

3. Cancellation of Debt income: If you have had or will have a home foreclosure, check out the tax rules at IRS.gov. Things may not be as bad as you think.

4. Commuting: If you ride your bike (bicycle) to work in 2009, it could be worth $20 a month, tax free from your employer. See IRS.gov. for more.

5. Deductions: The new additional standard deduction for non-itemizers can be as much as $500 or $1,000 if you are married, filing a joint return. Go to IRS.gov for details.

6. Election to Deduct Sate and Local General Sales Tax: You have an option when itemizing. Claim either State and local general sales taxes paid or state and local income taxes paid, but not both. IRS.gov has more.

7. Mileage: The standard mileage rate is changing from 59.5 to 55 cents per business mile as of Jan. 1, 2009. More information at IRS.gov.

8. Homebuyer Credit: The new “First Time Home Buyers Credit” is for a home purchased after April 8th, 2008 and before July 1st, 2009 and could be worth as much as $7,500. Do you qualify? See IRS.gov.

9. Residential Energy Property Credit: This credit has been re-instated for 2009 and is worth up $500 for up-grading your home with certain energy efficient items. See if you qualify at IRS.gov

10. Plug-in Electric Drive Motor Vehicle Credit: Buy a new plug-in electric car and get a credit of $2,500 or more. See IRS.gov about this today.
And one more for “tax credit”:

11. Record Keeping: Make sure you don’t omit or forget an item so you pay only the correct amount of tax - no more, no less. See IRS.gov for more details

source= az family

For 2008, the IRS has changed the personal exemptions and standard deductions to account for inflation adjustments. They include more than three dozen tax benefits that will affect virtually every taxpayer. Whether you file your own taxes or hire a tax professional, it is important to understand the key changes when filing your 2008 tax return in early 2009.

Here are the key changes to the 2008 tax changes as defined by the IRS:

1. The value of each personal and dependency exemption, available to most taxpayers, is $3,500, up $100 from 2007.
2. The new standard deduction is $10,900 for married couples filing a joint return (up $200), $5,450 for singles and married individuals filing separately (up $100) and $8,000 for heads of household (up $150). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
3. Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $65,100, up from $63,700 in 2007.
4. The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $4,824, up from $4,716. The income limit for the credit for joint return filers with two or more children is $41,646, up from $39,783.
    
   The maximum Hope credit, available for the first two years of post-secondary education, is $1,800, up from $1,650 in 2007.
5. The income limit for the savers credit is $53,000 for joint filers (up $1,000), $39,750 for heads of household (up $750) and $26,500 for singles and married persons filing separately (up$500).  Low-and moderate income workers who contribute to a retirement plan, such as an IRA or 401(k), may qualify for the credit, which is available in addition to any other tax savings that apply.
6. The contribution amount allowed for Roth IRAs begins to phase out for joint filers with incomes exceeding $159,000 (up from $156,000) and $101,000 (up from $99,000) for singles and heads of household.
7. For contributions to a traditional IRA, the deduction phase-out range for an individual covered by a retirement plan at work begins at income of $85,000 for joint filers (up from $83,000) and $53,000 for a single person or head of household (up from $52,000).
8. Participants in most employer-sponsored 401(k) plans and 403(b) plans for employees of public schools and certain tax-exempt organizations can contribute up to $15,500, unchanged from 2007.  Individuals, age 50 or over, can make an additional contribution of up to $5,000, also unchanged from 2007.
9. Individuals participating in SIMPLE retirement plans can contribute $10,500, unchanged from 2007.  Those, age 50 or over, can make an additional contribution of up to $2,500, also unchanged from 2007.
10. The annual contribution limit for most defined contribution plans rises to $46,000, up from $45,000 in 2007.

In these economic times it is a smart idea to take advantage of all tax incentives that you possibly can.

There is one week left before Americans go to the polls and vote for the next president of the United States of America. According to top political survey polls, Barack Obama has increased his lead by 8 to 10 percentage points.

Are you still on the fence about who to vote for? Will the candidates tax plans influence your vote? Well, here is a quick reference that clears up any questions you may have about Senator Barack Obama’s tax cut plan.

Married couples making $75,000, with 2 children, with one of them in college would be entitled to a tax cut of:

$3,700, this amount includes…

• $1,000 Making Work Pay Tax Credit
• $ 500 universal mortgage credit
• $4,000 college credit

Married couples making $90,000 would be entitled to

$1,000

Single parents, making $40,000, with 2 young children and childcare expenses would be entitled to:

$2,100, this amount includes…

• $500 making work pay tax credit
• $500 universal mortgage credit
• $1,100 from Obama expansion of the child care tax credit

A 70 year old widow making $35,000 would be entitled to:

$1,900

These calculations are based on IRS Statistics of Income. The good news is that these tax savings are actually conservative, because they do not account for other tax credits and incentives that you may qualify for, specifically:

• $500 in savings from expanded Savers Credit
• $2500 in savings per family from the Obama healthcare plan

Find out more of the Obama Tax Plan.