Free eNewsletter & Special Promotions

Volume 6, Issue 3, March 2008

If the images in this newsletter don't appear, make sure you are connected
to the Internet and click here.

Don’t Miss Out on These Tax Credits…

Tax credits can have quite an impact on the amount of tax you owe, yet they are often ignored. Tax deductions simply lower your gross income to determine your adjusted gross income (AGI), and the amount of tax you owe is based on your AGI. Tax credits, on the other hand, are subtracted directly from your total tax bill, resulting in a dollar-for-dollar reduction in your taxes. Because tax credits reduce the amount of taxes owed, it is important to claim all of those available to you.

A number of tax credits are available for individual taxpayers. Below are very brief descriptions of some of the more common tax credits:

Credits for lower income taxpayers:

Earned Income Tax Credit: The Earned Income Tax Credit is a credit for low income working taxpayers; it is intended to reduce the burden on these taxpayers. The amount of the credit is determined by income and family size.

Savers Credit: Lower income taxpayers may be able to take the Savers Credit of up to $1,000 ($2,000 if married filing jointly) for eligible contributions to a qualified IRA, 401(k), or other type of retirement plan.

Credit for the Elderly or Disabled: For individuals who are at least age 65 or for those who are under age 65, retired, and on permanent disability, the Credit for the Elderly or Disabled is available; income limitations apply.

Credits for taxpayers with children:

Child and Dependent Care Credit: The Child and Dependent Care Credit is available for taxpayers who incur costs for the care of a child under age 13, or for a disabled spouse or dependent, while the taxpayer works or looks for work.

Child Tax Credit: In addition to the Child and Dependent Care Credit, the Child Tax Credit is available for individuals who have a child. The credit provides for a maximum of $1,000 per qualifying child.

Adoption Credit: For taxpayers who adopt a child, up to $11,390 of qualifying adoption expenses may be claimed per child. For the adoption of a child with special needs, the credit may be allowed, even when there are no qualifying expenses.

Credits for educational expenses:

Hope and Lifetime Learning Credits: Taxpayers can claim these credits for qualified education expenses for themselves, their spouses, and dependents. Only one of the two credits can be claimed for each student per year.

Credits for homeowners:

Credit for Energy-Efficient Home Improvements: Valid only for home improvements placed into service January 1, 2006 through December 31, 2007, this credit is available for insulation, replacement windows, water heaters, and high-efficiency heating and cooling equipment. The home improvement credit has expired but can still be claimed on 2007 tax returns.

Mortgage Interest Credit: The Mortgage Interest Credit is available to help lower-income individuals afford homeownership. Homeowners who received a mortgage credit certificate (MCC) from their state or local government may be eligible.

The list above is not exhaustive; many other kinds of credits are available. Additionally, because there are limitations to the credits listed above, consult your tax preparer to determine which credits apply to your individual tax situation. The professionals at Kemper CPA Group LLP are available to answer all of your tax-related questions.

Back to the Top

Invest in Your Employees for a Solid Return

It’s an uncertain economy right now, and lately, good news has been hard to find. If you are a business owner, the current economy likely has you very concerned, wondering how it will affect your business now and over the long term. While this might not seem like the best time to make investments, there is an investment you can make in your business that can provide solid returns over time – invest in your employees.

Providing consistent, quality training benefits your business and your employees, helping to increase safety and productivity. But have you considered the skills your employees need to help them grow and help your business prepare for the future? Those ‘soft’ skills include:

Communication skills

Leadership

Understanding how to work with different personality styles

Relationship building

These skills are critical to the success and growth of your business and are key in identifying the future leaders who can make your business strong and better positioned to endure economic downturns. Strategic planning for the future of your business is very important; however, if you do not have the people in place to carry out that strategy, your company’s success will never be realized. Worse, difficult economic conditions may force you into layoffs or restructuring your organization.

An investment in training for your employees sends a distinct message that you care about them and their contribution to the business. Spend the time and money on your employees now to help your business well into the future.

Back to the Top

Facts About the Stimulus Payments

Even after the Economic Stimulus Act of 2008 was officially passed into law earlier this year, many taxpayers are still confused about the payments they will be receiving this summer. Consider the following facts:

Taxpayers must have a minimum of $3,000 of qualifying income (i.e., Social Security benefits, Railroad Retirement benefits, veterans’ benefits and earned income, such as income from wages, salaries, tips, and self employment) to receive a payment.

Eligible taxpayers will receive up to $600 ($1,200 for married couples). Taxpayers may receive an additional $300 for each qualifying child.

The payment will be reduced by five percent of the amount of qualifying income over $75,000 ($150,000 for married couples).

Taxpayers must file a 2007 tax return to be eligible to receive a payment; after the 2007 tax return is filed, the IRS will distribute the check.

The stimulus payment can be direct deposited if bank routing information is provided on the 2007 tax return; paper checks will also be distributed.

The stimulus payment is not taxable and will not reduce a taxpayer’s 2008 refund or increase the amount owed on 2008 tax returns.

To view a calculator that can help you determine the amount of your stimulus package tax rebate, click here. Additional information about the stimulus payments is available in the Economic Stimulus Payments Information Center on the IRS website. Should you have any additional questions, contact the certified public accountants and consultants at Kemper CPA Group LLP.

Back to the Top

Loose Change

The March/April 2008 issue of the “Loose Change” Newsletter includes the following articles:

Contact Kemper Capital Management LLC for all of your investing needs.

Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities officered through Securities America, Inc., a registered broker/dealer. Member NASD/SIPC. Thomas A. Moore, John D.
Porter, Shawna D. Horne, Sheila Lautenbacher, Jessica Daugherty, Joseph M. Mendes, CA Insurance Lic. #0C62535, Gregory Meador, Marcia Elder, Registered Representatives. Insurance services offered through KCPAG Insurance Services LLC. Kemper Capital Management LLC and its subsidiaries are not affiliated with Securities America.

Back to the Top

Small Businesses and the Internet – An Important
Partnership

The large majority of businesses in the United States are small businesses, yet recent research has shown that only 57% of them use the Internet as a part of their business processing.

High-speed access to the Internet is becoming more widely available, greatly increasing the opportunities for reducing costs and improving operations at your business. Kemper Technology Consulting can develop customized applications for your small business that use the Internet for sharing access to updated inventory data, sales and electronic commerce, or records processing.

Utilizing the speed and global reach of the Internet allows small businesses to reach customers or vendors quickly, securely, and in markets to which they may have never had access. The certified professionals at Kemper Technology Consulting have the skills and knowledge to bring the Internet to your business through the development and installation of the solid network infrastructure and application programming needed to bring your business to the Internet. We have strategic partnerships with a strong group of application providers that enhance our ability to bring a complete package of services to your business.

If you wish to bring your business to the Internet, the friendly professionals at Kemper Technology Consulting are here to help you succeed. Reduce your costs, improve efficiency, and contact us today!

Kemper Technology Consulting
Robinson, IL
618-546-5633
www.kempertc.com

Evansville, IN  •  Indianapolis, IN  •  Paducah, KY  •  Effingham, IL

Back to the Top

Please be advised that, based upon current Internal Revenue Service (IRS) rules and standards, the advice herein is not intended to be used, nor can it be used, as the sole basis for decisions. Additional issues may exist that could affect the treatment of the individual transactions, and this narrative does not provide a conclusion with respect to all such issues.

You are currently subscribed as: EMAIL_ADDRESS