The 2010 Tax Stimulus Rebate Attributes and Data

By Robert Nichols

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In 2010, we could get a tax rebate that rivals the amount everyone got in last year's rebate, which is fortunate news for everyone. With a new president in Washington and the financial crisis leaving many people poor, it reflects well on the new president to help out the common man and give him some help.

In the fall, you will be able to experience a new tax stimulus plan that will assist taxpayers. The total amount returned to taxpayers could be around $800 for each person, which can add up to around $150 billion or more. Since the 2009 stimulus wasn't really enough to get the economy started again, sources say that next year's rebate will help. It can be utilized to purchase gas or even merely save for an emergency. The IRS didn't do so great the last time they distributed stimulus checks, as many people didn't even get theirs due to computing errors.

Making another tax rebate looks dubious to some. With the skyrocketing cost of living, it's fully possible that Americans won't use it to stimulate the economy, but instead just save it and squander it. We've had a ton of people concerned about the advantages of an additional tax rebate. With the debt being as high as it is already, there are many concerns that we just don't have the money to bail out everyone; however, it's entirely possible that the tax rebates could come out of the banking bailout that is occurring.

President Obama, when he was campaigning, put forth a plan for tax rebates supplying every American citizen with $1000 that would be used for consumer spending and supplying the money they need to live. Oil companies may be more strictly taxed, supplying the rebate income. Now that he is president, Obama needs to put forth this plan and get it approved, so that the American economy can get the assistance it needs to survive; it's a critical time for this nation, and a plan like this could help.

One major frustration that Americans feel is paying for others' financial problems with their tax dollars, making them oppose tax rebates. What they have to be concerned about is all of the extreme military spending and financial bailouts to downed companies. No matter our national debt, we need to pay it off sometime, whether we're prepared or not. We might not be up for the task when the time comes. Our economy is in trouble, and has to be rescued before the damage gets too far, directly affecting people's livelihoods. A tax rebate may just be the program that gets us on the right path. - 31393

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These Loans May Come With Big Tax Benefits

By James Thompson

It turns out that not all loan programs are the same when it comes times to look at your tax situation. Did you know that when you take out a loan you could actually be reducing the amount of taxes you have to pay at the end of the year? Some loans may give you a tax credit which shrinks the yearly tax you owe and other kinds of loans may give you a tax deduction which lowers your gross income. Just about everyone wants to borrow cash from time to time and it's smart to do your research before jumping into a big loan commitment. Here's a quick guide to which loans may give you for a tax deduction, though obviously individual cases will vary.

Student Loans: You can, in many cases, deduct the interest you paid on the loan from your income taxes. Not all student loans are eligible for this, but it's a good way to reduce the taxes you pay, especially if you're a cash-strapped student with a limited income. The interest you pay on many student loans can only be deducted if you make under a certain amount of money, based on your individual filing status.

Home Mortgages: Out of all the loans that have tax benefits associated with them, home mortgages are probably the most talked about. Most home payment plans are designed so that you can deduct the amount of interest you pay on the loan every year. Since most home loans are set up to be paid over thirty years, that means that purchasing a house can give you 30 years of possible tax deductions. For most taxpayers their home is the largest purchase they ever make, and paying a home loan can actually be a good way to reduce the amount of money you owe on your federal taxes each year. Today many people are looking for different ways to change a home loan to take advantage of decreasing interest rates.

Home Equity Loans (HELOC): A home equity loan used to improve your house could eventually increase the value of your dwelling and give you even more equity in the long run. If your dwelling is more valuable now than when you bought it then you might be able to take out a home equity loan and deduct the interest you pay on that borrowed money. There are some restrictions about how much of your loan's interest actually qualifies for a tax deduction. You can use a home equity loan for a variety of things, you may be able to get additional tax deductions by using the money for home repairs.

Sometimes taking out the right kind of loan can literally save you thousands of dollars on your income taxes, so it's worth spending a little bit of time to look into what sort of tax credits you qualify for. There are, of course, a lot of differences between these loans. Everyone will not be eligible for all the different tax credits that these loans may offer. Sometimes your age, the amount of money you want to borrow and the purpose of the loan will limit the amount of money you can deduct from your taxes in any given year. Before you apply for any of these loans you may want to speak with your tax professional to make sure the tax benefits apply to your individual situation. - 31393

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Preparing for an IRS Audit

By Hubert Miles

Everybody is fearful of the possibility that some day they will get a letter from the Internal Revenue Service that they are going to be audited. What should you do now? How should you handle this situation?

Although a lot of folks break down because they understand that the IRS will be demanding to view their books and expense receipts, the reality of the situation is that the best audit advice is to remain calm and get together the data that you need. You should be thorough and as accurate as possible without worrying.

Prior to you deciding to put it to the side for a later date, take a few moments and start planning how you're going to respond to it. Get on the phone with the IRS and determine what is happening and at what time are they wanting to review your paperwork. This is an easy phone call that may assist you in determining what information you will need to get together before the meeting.

Likewise, bear in mind that the IRS representative that answered the phone is just doing their job. It's neither their fault or yours that you are getting audited. Provided you have been honest about your financial information you shoould not have anything to worry about.

Once you speak with the representative on the phone, you may determine that you need more time to get all the necessary documents together. In this case you may need to ask for a postponement. A postponement will grant you additional time to get the gather all the paperwork together. Many times these are granted provided you have been cooperative with the auditor and have a legitiment reason for needing the postponement. So don't wait to the last minute to get in touch with the auditor.

Closing Comments

Lastly, it's crucial to know that almost all audits are simply requested because of minor addition errors. You likely totaled up or subtracted wrong, or wrote down the data on the incorrect line. You may also have used the incorrect form. These types of audits are the most common. So keep a positive attitude and be honest with the auditor. Likely all you will need to do is fix some minor mistakes and then get on with your life. Believe it or not they understand and they are humen as well. - 31393

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Hubert Miles is a free lance writer and webmaster for several financial websites. For more information on Money Articles and Financial Articles.