The maximum Hope credit is doubled to $ 3,600 and the maximum lifetime learning credit to $ 4,000 for student attending institutions in the Midwestern disaster area. These favorable law changes apply to both 2008 and 2009. Qualified education expenses include: Tuition and fees, books, supplies, equipment, room and board.

Students resident at the follow- ing partial list qualify: Taylor University, Upland; Huntington College; Anderson University; Indiana State Univer- sity, Terre Haute; Indiana Uni- versity, Bloomington; and Pur- due, West Lafayette, and many more.

Beginning in 2009, the definition of a qualifying child changes. The new definition requires your child to be your dependent, be younger than you, and if your child files a joint return, they will be disqualified, unless the return was filed only to claim a refund.

In 2008, the credit was based on 15 percent of the taxpayer’s earned On earned income in excess of $ 8,500. The threshold has been reduced in 2009, to earned income over $ 3,000. The reduction will allow more taxpay- ers to use the additional child tax credit and increase the amount of tax refund they receive.

In February 2009, Uncle Same sweetened the deal by increasing the maximum credit to $ 8,000, extending the cut-off date to November 30, 2009 and elimi- nated the requirement to repay the credit . Eliminating the re- quirement to pay back the credit makes this tax break a red-hot deal.

In November of 2009, Uncle Sam improved the tax credit once more by expanding the definition of who qualifies as a first-time homebuyer and ex- tending the time to purchase your home through April 30, 2010. For homes acquired after November 6, 2009 the credit is no longer restricted to first-time purchases. Under the new rules, long-time residents may be eligi- ble for a reduced credit. To qualify, you must have lived in your old residence for any five- consecutive year period during the last eight-years, ending on the date your new residence is purchased. The credit for long- term homebuyers is 10 percent of the qualifying home’s purchase price up to a maximum credit of $ 6,500.

The income phase out threshold is increased to $ 225,000 MFJ.

Because of my experiences as an accountant to many businesses and the seven businesses in which I have had equity ownership, it was easy for me to determine where the skeletons were hidden. Sometimes you just have to “have been there and done that” to truly understand the paper trail left from transactions. She was truly thankful and can now look forward to a financially secure future.

One of our favorite examples of how Griggs CPA helped someone was in the late 1990’s. This client approached us and had a familiar story. He was well educated, help a masters in chemistry, but because of ethnicity was unable to break into a tough labor market. We created a business plan for his SBA Loan application. While his personal net worth was actually negative (clearly not the ideal situation), his business plan was strong and the proposed equipment use of funds had high loan values.

We were able to help him buy a building in an economic development zone and fully fund his equipment need. After closing, as we left the attorney’s office downtown, he literally leaped into my arms and gave me a true “Jerry Maquire “I love you man” hug. It was a moment we’ll never forget.

By being available year round Griggs CPA is able to help determine the tax impact for our clients before decisions are made that could have been timed differently and tax payments minimized.