* * * NEW for 2008 * * *

TAX CREDIT FOR FIRST-TIME HOMEBUYERS : Required Repayment Over A 15-Year Period - As part of the most recent enacted Housing and Economic Recovery Act of 2008, eligible first-time homebuyers should start planning to take full advantage of this new IRS tax credit of UP to $7,500.

If you are a first-time homebuyer who has purchased a home during this time frame, or are considering such a purchase, you'll find more specific information about this credit by visiting the IRS web site.

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ALTERNATIVE MOTOR VEHICLE CREDIT - New 2008 & 2009 models have now been added to the list of alternative motor vehicles for this credit. In addition to hybrids the IRS has added advanced lean-burn technology vehicles to the list of those eligible. For a complete list of eligible motor vehicles and their credit amounts visit the IRS web site.

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ADDITIONAL REAL PROPERTY TAX STANDARD DEDUCTION - If you pay State and Local property tax and do not use a Schedule A on your federal return to itemize your deductions, you can add those expenses UP to $1000 for joint filers in addition to the standard deduction to lower your tax liability.

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Changes to PERSONAL EXEMPTION & STANDARD DEDUCTION Amounts .(for most taxpayers)>>

Personal & Dependency: $3,500 (up $100 from 2007)

New Standard Deductions:

• Single - $5,450 (up $100 from 2007)
• Married Filing Joint - $10,900 (up $200 from 2007)
• Married Filing Separate - $5,450 (up $100 from 2007)
• Heads of Household - $8000 (up $150 from 2007)

Visit the IRS web site for more information on any increases for Tax-bracket thresholds, EIC (Earned Income Credit), Hope Credit (Education Credit), Savers Credit, Allowed Contribution Amounts for both Roth IRAs and Traditional IRAs, 401Ks, and SIMPLE Retirement Plans.

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ECONOMIC STIMULUS PAYMENTS - If you missed filing a 2007 Federal tax return by October 15, 2008 in order to receive an Economic Stimulus Payment, you can file a 2008 Federal tax return this coming year to claim your check.

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CLAIMING UNDELIVERED REFUNDS & STIMULUS CHECKS - If you filed your 2007 tax return and moved before you received either your federal refund or stimulus check, you will need to file a Change of Address Form 8822 with the Internal Revenue Service in order to receive them.

By law the economic stimulus checks must be distributed no later than December 31, 2008.

Check the status of your IRS Refund or Economic Stimulus Payment below:

"Where's My Refund?" Tool and "Where's My Stimulus Payment?" Tool

& for NC Tax Returns Where's My Refund?" Tool

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NORTH CAROLINA implements a State Refundable Earned Income Tax Credit for taxpayers who claim an earned income tax credit on their federal return. The credit for 2008 is 3.5% of the amount of the earned income tax credit the taxpayer qualified for on their federal return.

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Helpful Hints for Tax Season:

As the next tax season fast approaches, it's time to start considering all the information you'll need to collect to assist your preparer with your 2008 tax returns. Some of the most common items to you'll need to bring with you beginning in January 2009 are listed below.

If you received a Stimulus Payment in 2008 remember to bring in the statement that the IRS sent to you showing the exact amount you received or the amount you were entitled to, even if that amount was applied to IRS Debt or FMS Debt. It is required as an entry on your tax return for 2008. If you have not qualify or received a Stimulus Payment last year you may qualify for one this year. If you do it will be automatically calculated at the time you taxes are prepared for 2008.

If you itemize deductions on a Schedule A the following are some of the most reported deductions and will need documentation:

• Medical Statements or Receipts used for documenting all expenses paid in the year 2008 to include co-pays, eyeglasses, contact lenses, doctor bills, prescriptions, and medical miles (mileage to and from doctors, medical facilities, and drug stores to pick up medications). Most pharmacies and medical business offices will print a free statement of all payments for the year.
• Personal Property & Real Estate Tax Statements & Receipts used for documenting taxes paid on personal vehicles, boats, and similar property for the current year. If you have paid a previous year's tax in 2008, or will be paying your 2009 tax before January 1, 2009 you can deduct them in 2008.
• 1098 Mortgage Interest Forms used for documenting amounts paid for interest and real estate tax for the current tax year.
• Charitable Contributions Statements & Receipts used for documenting money donated to either your local church or non-profit organization, either will print a free copy of your annual contributions. If you donate items other than cash, you are required to keep a list of those items with a fair market value for each item. You can pick up a list at your local Salvation Army or Goodwill Foundation Center. For more about charitable contributions visit the IRS web site. *If you are unable to utilize the Schedule A for deductions, you can still put these contributions on the schedule to lower your NC taxable liability. Check with your preparer to see if this is true in your state too.
• Unreimbursed Employee Expenses such as job travel, union dues, job education, etc.

Income you have earned during the year is reported to the IRS on one or more of the forms listed below. Some of these forms must accompany your return, so remember to bring them with you.

• W2 Forms used for documenting income from work performed by an employee. You should receive this form from your employer before January 31st of the calendar year.
• W2-G Forms used or documenting income from winnings received during the year. Remember you are only allowed to deduct your losses up to the amount of your winnings.
• 1099-INT Forms used for documenting income from interest earned during the year from financial institutions such as banks, investment brokers, and credit unions.
• 1099-DIV Forms used for documenting income received from dividends and distributions from financial institutions such as banks, brokers, and similar businesses. Both the 1099-INT and 1099-DIV can also be displayed on a statement from such institutions.
• 1099-Misc Forms used for documenting income received from miscellaneous work you performed during the year, such as operating a business, contract work, rents from rental property you own, and other miscellaneous income. Don't forget to maintain proof for all costs and expenses incurred to earn the income in order to lower any tax liability.
• 1099-G Forms used for documenting income from unemployment compensation received during the current year.
• 1099-R Forms used for documenting income from distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc.
• SSA Benefits Statements used for documenting income from Social Security benefits which may or may not affect your taxable income for the year. If it does affect your taxable income, going forward, you can voluntarily have SSA withhold federal and state taxes.
• State & Local Refund Statements used for documenting your refund from the previous tax season. You begin reporting this income the second year after you begin using a Schedule A on your federal return.

If either you or your dependents are in college remember to bring in the following information to lower your tax liability:

• 1098-T Forms used for documenting payments received for qualified tuition and related expenses in the current year.
• Receipts for Educational Expenses you purchased at the campus bookstore such as books and software which are required for your course of study.

For more detailed information about the Schedule A or any of the forms listed above visit the IRS website.

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(252) 633-6430

(252) 633-9330

or

(252) 633-4289 fax

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