DAYTON, Ohio, April 1 // PRNewswire // -- Instant Tax Service(R), ranked the number one new franchise by Entrepreneur magazine in 2009, is helping customers navigate the latest tax breaks and credit enhancements resulting from President Obama's new stimulus plan. Using an experienced tax professional who's knowledgeable of the most current tax laws will help consumers maximize their refund and is one of the fastest, easiest ways to reduce tax season stress.
Some of the ways the Stimulus Package benefits taxpayers include:
For 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns. This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.
Certain fixed-income individuals, such as disabled veterans, railroad retirees, Social Security recipients and certain government workers will receive a one-time recovery payment of $250 in 2009. For individuals who receive both this payment and the Making Work Pay Credit, the Making Work Pay Credit will be reduced by the $250 payment.
For 2009 and 2010, the Earned Income Tax Credit (EITC) percentage will be increased to 45 percent of the first $12,750 of earned income for taxpayers who have three or more qualifying children. In addition, the EITC phase-out range has been adjusted upward by $1,880 to eliminate any marriage penalty for joint filers.
For 2009 and 2010, the refundable part of the child tax credit will be increased and the income threshold will now be set at $3,000.
In 2009 only, up to $2,400 of unemployment compensation will be excluded from gross income for federal income tax purposes.
Transit passes, van pooling, qualified parking and other qualified transportation fringe benefits are not typically included in employee income up to a certain dollar amount. Under the new law, this dollar amount will be increased to $230 per month, up from $120, for transit passes and van pooling.
Qualifying taxpayers who purchase a home before December 1, 2009 will receive up to $8,000 or $4,000 for married individuals filing separately. Taxpayers can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
There is a deduction available for state and local sales taxes as well as excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. Purchases before Feb. 17, 2009, are not eligible for this special deduction.
"We've always had a customer-centric approach to tax preparation," said Fez Ogbazion, Instant Tax Service CEO and Founder. "One of the keys to our business model is to ensure that taxpayers take advantage of the amended tax law benefits they're qualified to receive. Our ability to fully integrate the latest tax law updates into our software and conduct personal, one-on-one interviews with each of our clients allows us to ensure that they receive the maximum refund amount they're entitled to."
Instant Tax Service(R) is a retail income tax preparation company operating over 1,200 corporate and franchise locations in 35 states. Founded in 2000 in Dayton, OH and franchising since 2004, Instant Tax Service offers tax preparation, electronic filing, and refund anticipation loan services.