Federal Updates
  • Deduction for Motor Vehicle Taxes -- If you bought a new motor vehicle after February 16, 2009, you may able to deduct any state or local sales or excise taxes on the purchase.

  • Energy-Efficient Home Improvements -- You may get credit for energy saving doors/windows, insulation, roofs, and water heater, furnaces, and solar panels!

  • First-Time Homebuyer Credit -- The credit increases to as much as $8,000 for homes bought after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010).

  • Tax Credit for First Four Years of College -- the credit for first four years of college up to $2500 and part of the credit may be refundable.

  • Unemployment Compensation -- Up to $2400 unemployment compensation is excluded from income!

  • AMT Exemption Amounts -- For 2009, the AMT exemption amounts increased to $46,700 for individuals and $70,950 for married taxpayers filing jointly.

  • Child Tax Credit -- The refundable portion of the credit is increased by lowering the income, threshold to $3000.

  • Earned Income Tax Credit -- Taxpayers with three or more qualifying children will benefit, the new law increases the credit percentage from 40% to 45% of the first $12,570 of earned income.

  • Cobra Benefits -- The premium subsidy may not be included in the individual's income.

  • Required Minimum Distribution Waived -- For 2009, the RMD from IRA and retirement funds for people over 70 ½ is waived.

  • Home Foreclosure -- The cancelled debt might be waived.

  • For Business:
    • First-year 50% bonus depreciation for new business equipment purchasebsp;
    • Code Section 179 first-year expensing of new and used equipment purchases is extended to higher limit;
    • Carryback loss is extended to five years

    California Updates
  • Tax Rates -- Tax rates increased by one-quarter of one percent for the 1% bracket to 1.25% since early this year.

  • Allowance for Children -- down to $98, the same size as personal credit.

    We speak ENGLISH, MANDARIN & KOREAN.

    SuTing Lan, EA* & Yong Choi, EA*
     - Member of California Society of Enrolled Agents
    - Member of National Association of Enrolled Agents

    * An Enrolled Agent (EA) is an individual who has demonstrated technical competence in the field of taxation. Enrolled Agents, or EAs, can represent taxpayers before all administrative levels of the Internal Revenue Service.