TaxSlayer Pro Newsletter
Winter 2009
President's Letter
by Jimmy Rhodes, PRESIDENT
Tax season will be here before we know it and we have been working very hard on the 2009-2010 TaxSlayer Pro Tax Program. In order to receive your tax program, you must first make sure that your Taxslayer Pro “MY ACCOUNT” is completed.
Please go to www.Taxslayerpro.com and enter your user name and password. Once you are in your account, please update your Company and Bank information, even if nothing has changed since last year. It is very important for you to go thru this process. “My Account” must be updated and completed to release your tax program and get approved to do Bank Products for the upcoming year.
We are also proud to announce the new “TaxSlayer Pro PREMIUM Tax Program”. This program has all of the features of our CLASSIC SOFTWARE with the addition of PAPER CUT Paperless office, PDF Vault, Tax Status Now, Tax Office Assistant and Mobile Manager. These new features will reduce business expenses and increase office efficiency.
It’s not too late to upgrade to the PREMIUM product, all you have to do is call our sales team at 888-420-1040 to upgrade today.
From everyone here at Taxslayer Pro, we wish you Happy Holidays and a successful tax season. We greatly appreciate your business and are truly grateful for your patronage.
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TaxSlayer Books
TaxSlayer Books 2010 has the 2009 payroll tax forms needed to close out the year and the updated tax tables for 2010. Also new to 2010 is a Direct Deposit feature , which will save money by eliminating the need for checks. You will be able to offer your clients the ability to have their paycheck automatically deposited into their account saving them time by not having to wait in line at the bank.
Did you know that each year, checks use more than 674 million gallons of fuel and add 3.6 million tons of CO2 to the environment as they travel through the payment cycle? With TaxSlayer Books, you now have the ability to offer your clients more convenient access to their money while also helping out the environment.
Don’t forget, e-filing is FREE with TaxSlayer Books so take advantage of this efficient option. If it is your first time filing payroll forms electronically, you will need to register with the SSA and IRS early so you will be ready to meet the deadlines in a timely manner. Visit www.TaxslayerBooks.com to see all the great features TaxSlayer Books has to offer.
Coming in December 2009 is TaxSlayer Books W-2/1099 Web Version. Our web product is the easiest way to get your W-2s and 1099s done! We do the e-filing and mailing for you! You enter data on the TaxSlayer Books website, from a screen that looks like the actual 1099 or W-2. All of this is available for only $2.50 a form!
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Extended Homebuyer Credit
$8,000 First-time Home Buyer Tax Credit at a Glance
• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS
defines a first- time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home
purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the
full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
• To be eligible to claim the tax credit, buyers must have owned and lived in their previous
home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before
April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010,
the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to
$225,000 qualify for the full tax credit.
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Highlighting a Proud Customer of TaxSlayer Pro
Gloria A. Louthan, EA
Robert Lee Jr.
Professional Income Tax Service
I have been doing taxes since 1986, and Bob began in 1989. Although his tax knowledge started while he was on active duty in the Marine Corps, we both worked for a well known national tax organization until 1993 when we decided to form a partnership and venture out on our own.
We started with TaxSlayer Pro in 1996 after trying several other tax software programs. After a bad experience, we knew we had to go with a different software company. While attending an IRS Tax Forum we talked with several vendors but Lillie with TaxSlayer impressed us the most. When we talked to some of the technical support team, we knew what company we would go with and even to this day have been very happy with being a part of the TaxSlayer family. Software is only as good as the people behind it. With TaxSlayer, the technical support and sales team make it a pleasure to be a part of TaxSlayer. When we have a problem with a client, they are there to help work it out. A few years back, we had to do a S-Corp for a client who had over 75 rentals. Technical support got in there and within a few hours they made it possible to complete the return.
We have a diverse clientele made up of military and civilian clients in the United States and overseas. Our retention rate is at least 97% of our clients. At this time, we do around 2600 individual, corporations, partnerships and non-profit returns. We do not advertise in the media but we find the best advertising is word of mouth and our clients do that quite well. Every year we give a seminar to our home daycare providers on the Marine Corps Camp Lejeune base and New River Air Station. We have been providing these seminars since 1994 and they are always well received. We find helping people learn good record keeping helps us, the tax professional, to do a more accurate and timely return for them.
Our business is open year round and as Bob will tell you, I would work seven days a week if I could, but we try to keep our weekends free after the April tax season. We do a limited amount of bookkeeping for a few of our clients but preparing taxes is our first love and TaxSlayer makes it easy for us to keep our clients happy. Without TaxSlayer, we probably wouldn’t have grown the way we have. As TaxSlayer grew and expanded their tax programs, we were able to expand our business by doing more diverse and complex tax returns through their improved software.
On a personal note, Bob and I have between us seven children and eleven grandchildren and two great grandchildren. We are members of NSTP and enjoy traveling to their seminars and getting away from the office for a day or two. We also enjoy attending seminars at NC State in Raleigh or Charlotte; Agricultural seminar at Kinston, NC; IRS seminar at Orlando, FL; NSTP seminars at Williamsburg, VA, Asheville, NC, Charlotte, NC and Orlando, FL; and TaxSlayer at Augusta, GA.
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Meet The Team...
Name: Will Barrett
Birthplace: Augusta, GA
Family: Wife - Lisa; Son - Billy (1)
What do you like best about your job? I have met some great people while working here.
Favorite Hobbies: Golf, Soccer
Favorite Food: Steak and Potatoes
Favorite Places: Hilton Head, Lake
Favorite Color: Blue
Your Biggest Accomplishment: Graduating from Mercer University in 2004.
Something You Don’t Know About Me: I played two years of college soccer at Mercer.
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2009 Tax Law Changes
1. First-time Home Buyer Credit – See accompanying article
2. Sales Tax Credit for New Vehicles – Buyers of new vehicles can deduct the sales tax paid on the purchase, even if they don’t claim sales tax as an itemized deduction.
3. Indexed Tax Brackets – Thanks to higher inflation in the past year, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets all kick in at approximately 5% higher levels of income than in 2008.
4. Larger Personal Exemptions – For 2009, each personal exemption you can claim is worth $3,650, up by $150 from 2008.
5. Higher Standard Deductions – For 2009, the standard deduction for MFJ rises to $11,400, up by $500 from 2008. For single filers, the amount increases to $5,700 in 2009, up by $250 over 2008. Head of households can claim $8,350 in 2009, a jump of $350 from 2008. Non-itemizers who pay real estate taxes can claim even larger standard deductions.
6. Reduction in Itemized Deductions and Personal Exemptions for High AGI Taxpayers – Itemized deductions and personal exemptions are phased out as your income rises. In 2009, the reductions are a bit less painful. The cutback in itemized deductions occurs once your AGI reaches $166,800, regardless of your filing status. No matter what your AGI, you can never lose more than 80 percent of your itemized deductions. Personal exemptions are reduced by 2% for each $2,500 of AGI over $250,000 for MFJ, $208,500 for HOH and $166,800 for singles, but the reduction cannot exceed $1,217 per exemption.
7. Tax Credit for College Tuition – For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four (4) years of college, not just the first two years. It now also covers books and the AGI phase out limits are higher for 2009. Also, if the credit is more than your tax liability, 40% of it is refundable.
8. Earned Income Tax Credit – For families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50. Also, the phase out of the credit for joint filers starts at higher income levels in 2009 and 2010.
9. Child Tax Credit – If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more then $3,000 in 2009 and 2010, down from $12,550.
10. Higher Income Limits for Deductible IRAs and Roth IRAs – If you are covered by a retirement plan at work, you can make a full IRA deduction in 2009 if your modified AGI is less than $89,000 (MFJ) or $55,000 (single or HOH). The ability to contribute to a Roth IRA is easier this year with higher AGI phase outs ($166,000 to 176,00 for MFJ and $105,000 to 120,000 for single or HOH).
11. Increased Contribution Limit for 401(k) Plans – The maximum employee contribution rises to $16,500 from $15,500 in 2009 for these and similar workplace retirement plans. Workers 50 and older in 2009 can put an additional $5,500 this year, also a $500 increase.
12. Estate Tax Exemption – In 2009, the federal estate tax exemption rises to $3,500,000 from its 2008 level of $2,000,000.
13. Higher Annual Gift Tax Exemption – For 2009, you can give any individual up to $13,000 without owing any gift tax or having to file a gift tax return.
14. Credit for Energy Saving Home Improvements – The old 10% tax credit of the cost of energy saving home improvements is increased to 30% for 2009 and 2010, up to a maximum of $1,500 in the two year period. It applies to skylights, windows, outside doors, insulation, high-efficiency furnaces, water heaters and central air conditioners provided they meet certain standards.
15. Converting a Second Home to a Primary Home – If you convert a second home to a primary residence after 2008, you may not be able to exclude all of your gain. A portion of the gain on a subsequent sale of the home will be ineligible for the home-sale exclusion of up to $500,000, even if the seller meets the two-year ownership and use tests. The portion of the profit that is subject to tax is based on the ration of the time after 2008 when the house was a second home or a rental to the total time you used it.
16. Partial Exclusion for Unemployment Benefits – For 2009, the first $2,400 of unemployment benefits you received is tax free.
17. College Savings Plans – Beginning in 2009, 529 plans can be tapped tax free to pay for a computer or internet access.
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2009 Cambios en la ley de impuestos
by Ana L. Rivera, Representante en Español
2009 Cambios en la ley de impuestos
1. First-Time Home Buyer Credit - Ver artículo
2. Crédito Para Impuestos de Venta de Vehículos Nuevos - Los compradores de vehículos nuevos, pueden deducir el impuesto pagado sobre el impuesto de ventas en la compra, incluso si no pretenden reclamar impuestos de ventas como la deducción detallada.
3. Indexadas Aude Impuestos - Gracias a una gran inflación en esté último año, el 10%, 15%, 25%, 28%, 33% y 35% de todos los tramos fiscales fueron elevados a niveles de aproximadamente un 5% más de ingresos que en el 2008.
4. Exenciones Personales Más Grandes – Para el 2009, cada exención personal que usted puede reclamar tiene un valor de 3.650 dólares, un aumento de $150 des del 2008.
5. Deducciones Estándar Más Elevadas - Para el 2009, la deducción estándar para MFJ se eleva a 11.400 dólares, un aumento de 500 dólares des del 2008. Para los contribuyentes solteros, la cantidad aumenta a 5.700 dólares en el 2009, un amuento de $250 des del 2008. Jefe de los hogares puede reclamar 8.350 dólares en el 2009, un aumento de $350 des del 2008. Los que no ridden planillas detalladas y pagan impuestos de bienes y raíces pueden reclamar las deducciones estándar aún más grande.
6. Reducción en las Deducciones Detalladas y Exenciones Personales Para los Contribuyentes de Alta AGI - Las deducciones detalladas y las exenciones personales se van reduciendo a medida que aumenta su ingreso. En el 2009, las reducciones son un poco menos doloroso. El recorte de las deducciones detalladas occuren cuando su AGI alcanza 166.800 dólares, independiente de su estado civil. No importa cuál sea su AGI, nunca podrá perder más del 80 por ciento de sus deducciones detalladas.
Las exenciones personales se reducen un 2% por cada 2.500 dólares de ingreso bruto ajustado más de $250,000 para MFJ, 208.500 dólares para HOH y 166,800 dólares para individuales, pero la reducción no puede superar los 1,217 dólares por cada exención.
7. Crédito Para la Matrícula de la Universidad – Para el 2009 y 2010, el crédito Hope se sustituye por un crédito nuevo de hasta 2,500 dólares por estudiante al año por cuatro (4) años de estudios universitarios, no sólo los dos primeros años. Ahora también incluye los libros y los límites de AGI son más altos para el 2009. Además, si el crédito es superior a su obligación tributaria, el 40% es reembolsable.
8. Earned Income Tax Credit - Para las familias con tres hijos o más, el crédito máximo tributario de ingresos para el 2009 y 2010 aumenta por $628.50. Además, la eliminación del crédito para declarantes conjuntos se inicia a niveles de ingresos más altos en el 2009 y 2010.
9. Child Tax Credit – Si, el crédito es superior a la cuota tributaria del contribuyente, la totalidad o parte del crédito será reembolsado si el contribuyente gana más de $3.000 en el 2009 y 2010, un descenso de los 12,550 dólares.
10. Límites de Ingresos Más Altos Para Cuentas Roth IRA y Deducibles IRA – Si, usted está cubierto por un plan de jubilación en el trabajo, usted puede tomar una deducción IRA en el 2009 si su ingreso bruto ajustado modificado es menos de $89.000 (MFJ) o $55.000 (individual o jefe de familia). La capacidad de contribuir a una IRA Roth es más fácil este año con una mayor eliminación progresiva AGI (166.000 dólares a 176.000 para MFJ y 105.000 dólares a 120.000 para individual o jefe de familia).
11. Aumento de Límite de la Contribución de 401 (k) Planes - La contribución máxima de los empleados se eleva a 16.500 dólares un aumento de los 15.500 dólares en el 2009 para estos planes y planes de lugar de trabajo de jubilación similares. Trabajadores de 50 años o más en el 2009 pueden aportar $5.500 adicionalmente este año, un aumento también de $500.
12. Exención de Impuesto Sobre Bienes – En el 2009, la exención de impuestos federales de bienes asciende a 3.500.000 dólares un aumento de su nivel de 2.000.000 dólares en el 2008.
13. Aumento en la Exención de Impuesto Anual de Regalos – Para el 2009, usted puede darle a cualquier persona hasta 13.000 dólares sin deber impuesto sobre la donación o tener que presentar una declaración de impuesto sobre la donación.
14. Crédito Para el Ahorro de Energía del Mejoramiento del Hogar - El crédito fiscal anterior del 10% del costeo de los mejoramientos en el hogar para el ahorro de energía se incrementa a 30% para el 2009 y 2010, hasta un máximo de 1.500 dólares en el período de dos años. Se aplica a las claraboyas, ventanas, puertas exteriores, aislamiento, hornos de alta eficiencia, calentadores de agua y los aire acondicionado centrales, siempre que cumplan determinadas normas.
15. Conversión de un Segundo Hogar a un Hogar Principal – Si, convierte un segundo hogar a una residencia primaria al partir del 2008, puede ser que no pueda excluir toda su ganancia. Una porción de la ganancia en la venta posterior de la casa no será elegible para la exclusión de la venta-hogar hasta $500.000, incluso si el vendedor cumple con la prueba de propietario de dos años y las pruebas de uso. La parte de la ganancia que está sujeta a impuestos se basa en la ración del tiempo al partir del 2008 cuando la casa fue un segundo hogar o un contrato de alquiler al cambio del tiempo total que usted la utilizó.
16. La Exclusión Parcial de Beneficios de Desempleo – Para el 2009, los primeros $2.400 de beneficios de desempleo recibidos son libres de impuestos.
17. Planes de Ahorros Para la Universidad - Al partir del 2009, los planes 529 pueden ser libres de impuestos si, el dinero es usado para pagar por una computadora o acceso al Internet.
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Tech Support News
The days are getting shorter and the leaves are beginning to change, which can only mean one thing, tax season is almost here. We are currently putting the final touches on TaxSlayer Pro and we think you will be impressed with the 2009 program. While we are finalizing TaxSlayer Pro we want to make sure you have everything finalized and set up in your tax office.
One item you want to make sure you have finalized is the “Doc Prep Fee”. This is the fee you will be charging to prepare bank products. The Doc Prep Fee must be the same for every return you prepare. Chase, Republic, and Santa Barbara banks are requiring you to enter the Doc Prep Fee on your bank application in ‘My Account’. Once you get the 2009 TaxSlayer Pro software, you will need to enter the Doc Prep Fee into the fee setup menu. If you submit a return with a different Doc Prep Fee than what was originally entered on your application, the bank will reject the taxpayer’s tax return causing delays in the taxpayer receiving his or her refund.
This is also a good time to check your computers, printers, and your network to make sure they are all working properly. If you notice your computer running a little slow, a relatively inexpensive and quick fix is to add additional RAM to your computer. RAM (Random Access Memory) can be purchased for around $50 and installed in a matter of minutes. If you are not computer savvy, don’t worry, there are plenty of computer resource stores that will install RAM for a small fee.
What about Windows 7? Microsoft released their newest operating system in late October called Windows 7. We have been getting quite a few calls in Support about Windows 7 and its compatibility with TaxSlayer Pro. To answer everyone’s question, yes TaxSlayer Pro is compatible with Windows 7. If you are thinking of upgrading, I would do so now. By upgrading early, you will be certain that your printers, other software packages, and your network will be working properly before tax season begins.
If you have any questions about the items mentioned above, give us a call in Support. We’ll do our best to help you get your office setup and ready for tax season. I wish you a very successful tax season, and if I or my excellent customer service team can be of any assistance, please let us know.
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Scheduled Dates & Events
December 4th ...TaxSlayer Pro New User Seminar
December 24th-25th ...TaxSlayer Pro Sales & Support closed
January 1st ...TaxSlayer Pro Sales & Support closed
January 15th ...Begin Transmitting live IRS e-file returns
April 15th ... Last date for transmitting timely filed returns & Forms 4868
April 20th ...Last date for retransmitting rejected timely filed returns & Forms 4868
January 15th ...Begin Transmitting live IRS e-file returns
September 7th ...TaxSlayer Pro Sales & Support closed
September 8th-10th ...IRS Show in Dallas, TX
September 22nd-24th ...IRS Show in Atlanta, GA
September 24th ...TaxSlayer Books Seminar
September 25th ...TaxSlayer Pro New User Seminar
December 24th-25th ... TaxSlayer Pro Sales & Support closed
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