2008 Federal Tax Schedule

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2008 Federal Tax Schedule Powered By Docstoc
					                           2008 Indiana Department
                            of Revenue Tax Update

Wednesday, July 21, 2010
                           Electronic Filing

           • Nearly 1.9 million filed state return using an
             electronic filing option in 2007

           • 22-percent increase over the same time last year

           • Each electronic return filed saves taxpayers 96

Wednesday, July 21, 2010
                           Fast, friendly and free

         • Prepare and file Indiana tax returns using the Internet

         • Available to taxpayers and tax professionals

         • Uses a question/answer format


Wednesday, July 21, 2010
                           Collection Allowance Changes

                Change effective for reporting periods after June 30, 2008

           • 0.73 percent if the total sales tax collected was less than

           • 0.53 percent if the total sales tax collected was between
             $60,000 and $600,000

           • 0.26 percent if the sales tax collected was more than

Wednesday, July 21, 2010
                     Electronic Funds Transfer (EFT) Filers

           • Effective January 1, 2009 EFT taxpayers are
             required to file monthly ST-103 forms rather
             than quarterly recaps

           • Effective January 1, 2009 EFT withholding
             taxpayers are required to file monthly returns
             (WH-1) in addition to the monthly tax payment

           • Annual WH-3 is still required

Wednesday, July 21, 2010
                Withholding Tax

Effective Jan. 1, 2009 – County tax withheld must
   be broken down by county on WH-1 return.
                           Individual Income Tax

           Renters Deduction - Increased from $2,500 to

           Homeowners Deduction - 2008 taxpayers billed
             and paid property tax payable for 2007 may be
             eligible for up to $2,500 deduction

                Taxpayers can also be eligible for 2008
                deduction for taxes normally payable in 2008

Wednesday, July 21, 2010
                            Military Income

               Military Service Deduction – The maximum military
               service income-tax deduction is increased from
               $2,000 to $5,000 per qualifying person

Wednesday, July 21, 2010
                           Military Income

           National Guard and Reserve Component Member
           Deduction - For tax years beginning after Dec. 31,

             • For service as a result of involuntary orders
             • During the period the person is deployed or
               mobilized for full time service
             • During the period for which the member’s National
               Guard unit is federalized

Wednesday, July 21, 2010
                             Military Income

         To take these deductions:

                 • IT-40 Schedule 1 “Other Deduction"

                 • IT-40PNR Schedule D

Wednesday, July 21, 2010
                           Military Income


           • An individual may be eligible for both deductions
             within a given year

           • Both deductions when combined cannot be
             greater than the total taxable military income
             received during the year

Wednesday, July 21, 2010
                           Estimated Tax Carryover

                IT-40 and IT-40PNR – overpayments can be
                carried over to next year’s estimated tax account

                Beginning with 2008 tax returns, a remittance
                can no longer be added for purposed of
                increasing the amount to be carried over

Wednesday, July 21, 2010
                           Composite Filer Credit

               S corps and partnership are required to include all
               individual nonresident shareholder/partners on a
               composite tax return at the entity level. Individual
               nonresidents included on the composite return may
               have other taxable Indiana-source income, requiring
               them to file the IT-40PNR. If so, the individual may
               be eligible for a composite filer credit.

Wednesday, July 21, 2010
                               County Tax

         Counties can adopt or change local income tax rates
           through Dec. 31, 2008. Rates printed in booklets
           may have changed. For the current rates, visit:

         county tax schedules have been modified

               if Lake County adopts local tax, DOR must collect
               certain information for Lake Co distribution purposes

Wednesday, July 21, 2010
                              County Tax
                           New Schedule CT-40EZ

Wednesday, July 21, 2010
                           Processing Paper Returns

                Include all information loose in the envelope
                • No Staples
                • No Paper Clips

                1D Barcode will be on most forms/schedules
                  Barcode will identify:
                            • tax year
                            • form type
                            • page
Wednesday, July 21, 2010
                           2009 Earned Income Credit

               increases from 6 percent of the federal credit to
               9 percent (effective Jan. 1, 2009)

Wednesday, July 21, 2010

                            Effective Jan. 1, 2009
               you must distinguish between state AGI tax and
               LOIT on the IT-40 ES and ES-40

Wednesday, July 21, 2010

                           Effective Jan.1, 2009

               nonresident alien can claim only one exemption
               for purposes of figuring withholding tax

Wednesday, July 21, 2010

                           Effective Jan. 1, 2009

               withholding of AGI from an annuity, pension or
               retirement plan must distinguish between AGI
               tax and LOIT

Wednesday, July 21, 2010
                      Personal Representative Information

         • Taxpayers can use this area of the tax returns to
           authorize a personal representative
         • Personal representative can be a friend, relative, etc.
         • Authorization can be revoked anytime with signed
         Required information:
               • name
               • Phone number and complete address

Wednesday, July 21, 2010
                           Paid Preparer Information

                             Required Information:

         • Name/address of firm
         • IN-OPT on file with preparer if not filing
         • ID number
         • Telephone number
         • Complete address
         • Signature with date
Wednesday, July 21, 2010
                                   Power of Attorney

                           • Individual representative name
                                   • address
                                   • telephone number

                           • Firm or Corporation
                                  • address
                                  • telephone number

Wednesday, July 21, 2010
                           Power of Attorney

           The Department will accept a signed, faxed POA.
               • Fax POA to: (317) 615-2736

           We will even accept an electronic image:
              • PDF, JPEG, GIF
              • Email the image to:

           Mail to: P.O. Box 7230 Indianapolis, IN 46207-7230

           FAQs visit:
Wednesday, July 21, 2010
                           Electronic Filing Mandate

               if a professional preparer files more than 100 tax
               return in a calendar year for individuals, those
               returns must be filed in an electronic format

Wednesday, July 21, 2010
                           Electronic Filing Mandate

                             Effective Jan. 1 2011
                A penalty for professional preparer of $50 is
                imposed for each return that is not filed
                electronically, $25,000 per calendar year.

                Individuals may opt-out having their return filed
                electronically. Form IN-OPT must be signed and
                filed with preparer. Opt-out option must be
                indicated on the return.

Wednesday, July 21, 2010
                           CollegeChoice 529
                           New Plan Administrator
           • Account numbers will now be 11 digits beginning
             with “61” or “62”

           • For more information visit:

           • To claim credit you must include the IN-529:
            IB #98

Wednesday, July 21, 2010
                           Obsolete Schedules

               forms used to report partnership and/or S
               corporation income (loss) no longer required

                           •   Schedule 3
                           •   Schedule 3A
                           •   Schedule F
                           •   Schedule F1

Wednesday, July 21, 2010
                           Estimated Corporate Payments

               For taxable years beginning after Dec. 15, 2007, a
               corporation or financial institution is not required to
               file quarterly estimated payment if its annual unpaid
               liability is less than $2,500. The previous limitation
               was $1,000.

Wednesday, July 21, 2010
            Corporate Information

Qualified Patents Income Exemption
• Income tax bulletin #104
Captive Real Estate Investment Trust
• Effective Jan. 1, 2008 – Corps must add back
  deductions for dividends paid to shareholders of
  a captive real estate investment trust for taxable
  years beginning after Dec. 31,2007
                           Other Indv/Corporate Credits

         Indiana Research Expense Tax Credit Increasing

         Ethanol Production Tax Credit to Include Credit for
           Cellulosic Ethanol
                      • Information Bulletin #93

         Energy Star Heating and Cooling Equipment Tax Credit
                      • Information Bulletin # 100

Wednesday, July 21, 2010
                           Other Indv/Corporate Credits

           Rerefined Lubrication Oil Facility Credit Repealed
                        • Effective March 20, 2007 – credit is
           Coal Gasification Technology Investment Tax Credit
                        • Information Bulletin #99
           Media Production Credit
                        • Commissioner’s Directive #36
           Ethanol Production Credit
                        • Information Bulletin #93

Wednesday, July 21, 2010
                              Additional Highlights

                           New Subscription Tool Available

 • After registering, you’ll receive an email to inform you of
   Web site updates

 • Subscribe to the entire Web site or a specific area

 • Choose when you receive emails – Daily, Weekly or

Wednesday, July 21, 2010
                           Additional Highlights


           • Instant access to file and pay business taxes online

           • Review account history


Wednesday, July 21, 2010
                           Additional Highlights


           • Form changes

           • Web site suggestions

           • Department interaction


Wednesday, July 21, 2010

Description: 2008 Federal Tax Schedule document sample