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Townsend Times Townsend Tax and Accounting Services Inc. Newsletter: January 2011

New house tax credit In this issue: New house tax credit Future tax changes Message from the President About Townsend Townsend Services

College student news The $4,000 college tuition and fees deduction expires after 2010 unless extended by Congress. See Publication 970

Unemployment news For the year 2010, the first $2,400 of unemployment benefits you receive is no longer tax-free. See Publication 596

Since 2008, first-time homebuyers have enjoyed the tax credit. With each year, the credit gets better and better. This year, in addition to giving first-time homebuyers an $8,000 tax credit, existing homeowners are for a break as well. Existing homeowners can now receive a 10% tax credit up to $6,500. To qualify: ► Homeowners need to have purchased or closed on a replacement home by September 30, 2010. ► Homeowners must have lived in previous residence for 5-consecutive-years for the past eight years. ► Homeowners do not have to sell previous home but need to make new home primary residence. The income limits have also been expanded for homebuyer tax credit. Filing as single or head-of-household: MAGI less than $125,000 – Full credit* MAGI $145,000 or greater – Partial credit Filing as married: MAGI less than $125,000 – Full credit MAGI $145,000 or greater – Partial credit *MAGI (modified adjusted gross income

Changes for 2011 Tax Returns Tax Credit for College Tuition The Hope Credit is again limited to the first two years of college and is capped at $1,800. None of the credit is refundable if it is more than your regular income tax liability. Payroll Tax Credit Starting in 2011, the partial credit for payroll taxes paid is no longer available. Child Tax Credit After 2010 the child credit drops to $500 from $1000

Duluth Office 1500 Pleasant Hill Rd., Suite 112 Duluth, GA 30096 770-381-7681

Stockbridge Office 3523 Hwy. 138, SE Stockbridge, GA 30281 770-389-5192

Smyrna Office 300 Village Green Cir SE, Suite 104 Smyrna GA 30080 770-433-0606

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Townsend Times

Message from the president

Happy New Year! With a new year upon us there are many unknown experiences awaiting us. But there is one thing that we can always expect – taxes. Soon W-2s will be arriving in the mail and in no time April 15th will be upon us. Tax credits and rules change every year and keeping up with the newest credits and deductions to maximize your return can be difficult. We make sure that we match any available credits and deductions to your financial summary. By working with Townsend Tax and Accounting Services to file your tax return, you can rest assured that your tax return will award you the best deduction possible.

We stay up to date with the latest changes. Every year, our knowledgeable tax preparers attend classes and are tested on the tax credits, deductions, and laws. We can handle even the more difficult returns so that you can be confident that the correct information is filed with the government. Every taxpayer is different and you deserve service that caters to your specific tax needs. You can expect friendly, personalized service from all Townsend employees. We guarantee our returns to our clients by paying any penalties and interest if any error occurred due to our preparation. lf your return is audited, we will assist you with the processIn the past, audits were rare but the IRS has changed their rules. You are required to pay your taxes but not a penny more. We are available all year round and welcome you to visit or call us any time for your tax or accounting needs. Sincerely, James Townsend, President

Our dedicated and knowledgable tax specialist have served you and your tax needs for over 50 years.

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Tax Return Preparation Form

Townsend Times

Use the form below to list all your income, dependents, expenses, and contributions for the year. This form will assist us with your tax return. Bring this along with your W-2 forms and 1099 forms to one of our three locations to complete your tax return.

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Townsend Times

Townsend Services We provide tax preparation of: ►► ►► ►► ►► ►► ►► ►►

Individual Returns C or S Corporations LLC and Self Employed Partnerships Fiduciaries Estate and Gift Taxes Out of State Returns

We also provide: Electronic filing Instant Tax Refunds Assistance with IRS Problems Accounting services for small businesses Giftcards for referrals

Julia Cox, Mgr. Bobby Reynolds, Mgr 3523 Hwy. 138, SE Stockbridge, GA 30281-7852

Townsend Income Tax & Accounting Service of Stockbridge, GA, Inc.

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Townsend Times Sample  

To qualify: ► Homeowners need to have purchased or closed on a replacement home by September 30, 2010. ► Homeowners must have lived in previ...

Townsend Times Sample  

To qualify: ► Homeowners need to have purchased or closed on a replacement home by September 30, 2010. ► Homeowners must have lived in previ...