Home » NEWS » Banking & Finance » Newer programs, credits available

Newer programs, credits available

New homeowner credits are still available for longtime homeowners

As taxpayers prepare to meet the looming April 15 deadline to file 2009 income tax returns, one accountant provided insight to newer programs and credits available this year.

Becky Covington, a tax partner with Haddox, Reid, Burkes and Calhoun in Jackson, said there are several programs taxpayers should be aware of.

For example, Covington said new homeowner credits are available for longtime homeowners, as well.

“The credits are billed for first-time homebuyers, but there are credits for longtime homeowners, or those who have had the same principle residence for five years in an eight-year holding period,” she said.

New education credits are available for college students through the American Opportunity Credit program.

Covington said the program gives refundable credit to students in their first four years of an undergraduate degree program; in past years the education credit only offset tax liabilities.

Lastly, Covington said theft loss deductions are available for victims of a fraudulent investment scheme such as the Madoff or Stanford Ponzi schemes.

“Luckily, that’s not something we see every day,” she said. “But with the Stanford accounts, it is something we’re seeing more of.”

Although not an issue for 2009 filings, she said clients also are asking about converting traditional IRAs to Roth IRAs in 2010.

“It’s something they’re considering doing for 2010 because it’s something they’ve heard about on the news,” she said. “We can make calculations to see if it would be beneficial to them.”

As for late filings, she said she hasn’t seen specific issues causing taxpayers to file an extension.

“The ones who tend to put it off until the last minute are putting it off until the last minute,” she said. “The ones who file it in January filed it in January. And, as usual, (accountants) are the worst; we’re always filing an extension for our own.”


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Laura Smith

Leave a Reply