Top Ten facts about the Tuition and Fees Deduction 

The Tuition and Fees deduction of up to $4,000 is available to help parents and students pay for post-secondary education. Below are ten important facts about this deduction every student and parent should know.

1. You do not have to itemize to take the Tuition and Fees deduction. You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A.
2. You may be able to claim qualified tuition and fees expenses as either an adjustment to income, a Hope or Lifetime Learning credit, or – if applicable – as a business expense.
3. You cannot take the tuition and fees deduction on your income tax return if your filing status is married filing separately.
4. You cannot take the deduction if you are claimed, or can be claimed, as a dependent on someone else's return.
5. The deduction is reduced or eliminated if your modified adjusted gross income exceeds certain limits, based on your filing status.
6. You cannot claim the tuition and fees deduction if you or anyone else claims the Hope or Lifetime Learning credit for the same student in the same year.
7. If the educational expenses are also allowable as a business expense, the tuition and fees deduction may be claimed in conjunction with a business expense deduction, but the same expenses cannot be deducted twice.
8. You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.
9. The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.
10. IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Issue Number:    IR-2009-027

Inside This Issue

First-Time Homebuyers Have Several Options to Maximize New Tax Credit  

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.

The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.

“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”

First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

The filing options to consider are:

• File an extension — Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15.  This step would be faster than waiting until next year to claim it on the 2009 tax return.  Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later — Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later.  Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return — Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008 — For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.

U.S. DEPARTMENT OF THE TREASURY Washington March 4, 2009

Home Affordable Modification Program Guidelines

March 4, 2009

Reference;

http://www.financialstability.gov/

Please pray for Lucy Gallardo as she goes into a heart surgery a procedure to check her last years stint and repair any other problems. She will be in surgery today at 3 pm Mission Viejo Hospital. She has been having heart problems as long as our Dearest Uncle Rudy. In fact my Uncle Rudy told my Dad (Uncle John) that she has similar heart problems as he did with heart arrhythmia and chest pain. Uncle Rudy would check in on Lucy and Lucy check in on him while staying in the Hacienda Gallardo Mexico. On Thursday Feb 26, My Mom (Aunt Lucy) started with bad chest pains while in Mexico and My Dad rush her in record time to the San Clemente Hospital then they transferred her to the Mission Viejo trauma hospital. I will post her condition after 4pm today; my family thanks you for your prayers and concerns.

We just want to hear our mom’s (Auntie Lucy’s) larger than life LAUGH that you all know!

May God Bless our family and friends,

John Michael

PS posted On www.gallardofamily.com update condition of Lucy (Gma Lucy)

Exclusive Update

Understanding the Higher Loan Limits

law by the President on February 13, 2008. This new law is effective immediately and includes a

temporary increase in both the FHA and conforming loan limits to as high as $729,750 in high

cost areas. This means that the interest rates on many mortgages will go down because these

loans are now eligible to be purchased by Fannie Mae and Freddie Mac or insured by the Federal

Housing Administration (FHA). Previously, the FHA was only allowed to insure loans with balances

lower than $200,160 - $362,790, depending on the county where the property was located. Also,

Fannie Mae and Freddie Mac were only allowed to purchase loans with balances at or below

$417,000. This resulted in limited options and higher financing costs for those with loan balances

above these limits. The new law substantially increases these limits in high cost areas and opens

up new options and lower financing costs for many people.

2. Determining the Median Home Price in Your Area

As required by law, on March 6, 2008, the Secretary of Housing and Urban Development (HUD)

published the median house prices and new loan limits for the various areas across the country.

Contact me today and I'll research your info and let you know exactly what the median home

price and loan limits are in your area and how you can benefit from this information.

because after this year, your costs will be higher and your options more limited again.

When does this all go into effect?

Mares Mortgage

32172-A Camino Capistrano

San Juan Capistrano, CA 92673

949-842-9789 direct

949-489-8300 alternate

949-369-7601 fax

http://www.maresmortgage.com