Benefits
Homebuyer Credit: The homebuyer credit authorized by the American Recovery and Reinvestment Act was due to expire on November 30, 2009. This credit has been extended to purchases made before April 30, 2010. In addition, individuals who have owned a home and lived in their residence for five consecutive years during an eight year period ending with the date the new home is purchased are eligible for a tax credit of up to $6,500.
Dependents are prohibited from claiming the credits and taxpayers must provide documentation with their return to validate the purchase of their home.
Mandatory electronic filing: Tax professionals who file more than 10 individual, estate, and trust returns annually must file electronically. This requirement is limited to returns filed with the Internal Revenue Service, but Missouri Individual Income Tax Returns may be filed electronically when your federal return is transmitted.
Benefits of Electronic Filing
- Convenience. You can electronically file 24 hours a day, 7 days a week.
- Security. Your tax return information is encrypted and transmitted over secure lines to ensure confidentiality.
- Accuracy. Electronic filed returns have fewer errors than paper returns.
- Direct Deposit. You can have your refund direct deposited into your bank account.
- Proof of Filing. An acknowledgment is issued when your return is received and accepted.
Click here for more information regarding electronic filing.
Carryback for Net Operating Loses: The American Recovery and Reinvestment Act provided certain small businesses the ability to carry back their net operating losses occurring in 2008 for 5 years. This 5 year carry back provision has been extended to losses occurring in 2009 (although if a business has losses in 2008 and 2009, they may not carry both losses back 5 years) and any business is eligible. If the loss is carried back for 5 years, it may only offset 50 percent of the taxable income in that year. There is no limit to the amount that can be used to offset taxable income in any other year.