How the New Administration Will Affect Your Taxes

The election of President Obama held special significance to this country and many people around the world. The day the new administration took office represented a change in current politics and an overhaul of policy. It also represents a change in the financial world. The stimulus bill put in place by the Bush administration is being fully dispersed and the Obama stimulus package has been passed. Financial rules and regulations are subject to change.

What does that mean for you this year at tax time?
Will any of the stimuli, previous or future be available through your filings? Will the Obama administration issue extra rebate incentives to small business owners, families or individuals?

Taxes need to be filed by April 15, 2009 for most of us. Are you itching to get your return? Should you wait to see if the Obama administration tries to stimulate the economy with an extra rebate?

You should file now. Changes to tax policy take time to administer. When you prepare your return you don’t do anything to get a part of the stimulus; the government automatically determines what you get from the package based on your current and prior tax returns. Any added incentives placed will be applied to your filings automatically. There’s no point in delaying your taxes. The sooner you file the sooner you collect your refund.

The new administration has implemented significant changes directly affecting small businesses. Carry-back losses have been extended. Up until recently, you could only carry back for the last two years. With the new bill in place you can carry back through 2003. Putting it another way, this means that if you have a current NOL (net operating loss) you can claim money you paid out in taxes from those years against your 2008 taxes.

Businesses that hire certain individuals such as unemployed veterans, young people and people who have been out of work for a certain amount of time can claim up to $2,400 for each worker. For clarification of the rules and a full list of stimulus related tax breaks, it’s best to seek out a knowledgeable tax accountant.

For more inofrmation contact, Moshe Wolcowitz, Accountant
www.accmoshe.com