The recently enacted "American Recovery and Reinvestment Act of 2009" (the 2009 economic stimulus act) contains a wide-ranging tax package that includes tax relief for low and moderate-income wage earners, individuals and families with college expenses, and home and car purchasers. I'm writing to give you an overview of the more widely applicable tax changes affecting individuals and families in the new law. Please call our offices for details of how the new changes may affect you and your family.

What is expected to substantiate the deduction for using a vehicle for work? Whether it is a claim for actual expense incurred or the standard mileage rate, the IRS requires substantiation of the use. This is a good time to review

How to substantiate business/investment use of a vehicle --

Deductions for the business/investment use of vehicles (including both cars and trucks) are not allowed unless the usage is substantiated with an adequate record of the following elements:

1) The date, mileage and business or investment purpose of each trip;

Get ready for this. Congress approved legislation this week that would temporarily suspend an excise tax which is assessed on seniors who fail to take a required minimum distribution (RMD) from their retirement accounts including IRAs, 401(k)s, and 403(b)s. The bill would waive the penalty on RMD for 2009 (—please read the preceding statement twice!!!), thereby allowing seniors to recoup some of the losses they have experienced as the stock market plummeted. Under the Worker, Retiree and Employer Recovery Act (H.R.

New Deductions and Credits for South Carolina Taxpayers

South Carolina has a bunch of changes for its taxpayers. One impacts every South Carolina taxpayer. It is a tax rate change that is intended to reduce the amount of tax that you may be required to pay.

Tax Rate Change – South Carolina passed a tax rate reduction for tax year 2007. The lowest tax bracket, the 2.5% tax rate bracket, is eliminated. For tax year 2007, the first $2,630 of Federal taxable income (what was also South Carolina taxable income) is tax free.