JK Harris Reminds Taxpayers of Changes for Upcoming Tax Season

Tax season is approaching and JK Harris and Company wants to make sure taxpayers are aware of changes that may affect them.

North Charleston, S.C. (PRWEB) November 23, 2008 -- As the year draws to a close, it is a good time to be thinking about tax planning. According to Peter Hukki, Enrolled Agent with JK Harris and Company, the nation's largest tax representation firm, there are new credits, as well as extensions of previous credits taxpayers need to consider.

"This year, there are several changes to the tax laws taxpayers should be aware of in preparing for the upcoming filing season," said Hukki, an Enrolled Agent of 34 years. "There are new credits to be aware of as well as extensions of previous credits you may qualify for."

One credit likely to benefit a large pool of taxpayers is the First Time Homebuyer's Credit for qualified buyers who purchased or will purchase a home between April 8, 2008 and July 1, 2009. The credit will either reduce how much you pay or increase your refund. The credit will give you 10% of the purchase price of your new home, up to a refundable credit of $7,500. According to Hukki, this credit is basically a zero interest loan, as it must be repaid over 15 years starting two years after the year in which you claim the credit. If you claimed the maximum credit of $7,500, your repayment would be an additional tax of $500 each year when you file your return.

There is still a tax credit available on certain hybrid vehicles. If you are planning to buy a qualifying hybrid vehicle, you should do it by December 31, 2008 to receive a tax credit. This credit is only allowed on a certain number of hybrid vehicles produced by each manufacturer. More information is available on the credit at http://www.irs.gov/newsroom.

This past October, President Bush signed into law the Emergency Economic Stabilization Act of 2008, which has more than 100 tax provisions worth over $150 billion in tax benefits. Included in the Act are:

* Another AMT patch to protect middle class taxpayers from paying the Alternative Minimum Tax or AMT, a tax originally intended for those who were not paying any income tax due to large write-offs or exempt interest income.

* Popular tax breaks for education, such as the $250 deduction for teachers who buy out-of-pocket classroom supplies, as well as the Tuition and Fees deduction for eligible taxpayers with higher education expenses.

* The option to deduct state and local sales taxes rather than just state income tax. This benefits taxpayers living in states where there is no state income tax (Florida, Texas, Alaska, Nevada, South Dakota, Washington and Wyoming).

* The option for IRA owners who have reached 70 ½ and must begin withdrawing money from their retirement accounts allowing them to contribute up to $100,000 tax -free to charity.

"It is very important taxpayers are aware of the changes Congress makes year to year to the tax code," said Hukki. "For many taxpayers, it is best to seek professional assistance to insure you are not missing out on any deductions or credits you might be entitled to."

Taxpayers can find more information on a larger range of tax changes for individuals at http://www.irs.gov/formspubs.

About JK Harris:

JK Harris & Company, LLC, (www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax representation firm and has served over 225,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 425 locations nationwide by appointment only. The company also provides services for student loan debt, fee-based financial planning, tax return preparation, and audit representation.

PPI an Antidote to Mortgage Arrears Says Burgesses

Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs.

Braintree, Essex (PRWEB) November 22, 2008 -- Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance (http://www.britishinsurance.com) lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs.

"There's a clear correlation between the increasing number of job losses and mortgage arrears, so it makes sense to buy a policy that will ensure continuity of income to meet monthly bills. PPI provides a valuable financial safety net for people whose income is interrupted through accident, sickness or unemployment."

According to figures released today, the CML reports the number of households at the end of September 08 with more than three months of mortgage arrears was 168,000. In June 08, the figure was 155,600, whilst in March it tallied 142,000.

It's widely-recognised that the economic downturn, slow income growth and increases in food and fuel costs have taken their toll and the CML predicts the number of households in arrears by the end of the year will far exceed its previous forecast of 170.000.

Sara-Ann continues: "168,000 households in arrears by Q3 this year equates to around 613* households per day unable to meet their loan repayment. This figure is staggering and frightening. Whilst I realise PPI may not be suitable for all, I do wonder how many homeowners could have given themselves some financial breathing space with a policy that pays their bills for up to a year."

PPI cover is sold per £100 of benefit and purchasers can opt for unemployment or accident and sickness cover, or all three. One of a few to continue offering employment cover only is independent firm, British Insurance (http://www.britishinsurance.com). It charges £3.40 per £100 for unemployment, £3.90 per £100 for accident, sickness and unemployment and £1.90 per £100 for accident and sickness.

The CML paints a bleak picture and is asking members to avoid repossession at all costs and suggests the Government concentrates on providing more assistance in next week's pre-Budget report. It concedes that lenders cannot change the causes of financial difficulty, ie unemployment, and is aware the arrears situation will get worse before it gets better.

"It's all very well calling for lenders to be more sympathetic to homeowners' dilemmas and lobbying the Government to do more," says Sara-Ann, "but monthly bills still won't get paid and debts will continue to rise. I believe the only immediate practical solution is PPI. A small monthly outlay could pay rich dividends over the course of a year if the unexpected was to occur."

Repossession statistics stand at 11,300 for the end of September. In June 08, the figure was 10,100 and it March it stood at 8,800. Sara-Ann concludes: "To the end of September, some 41** homes were repossessed daily. And this doesn't take into account properties that have repossession orders hanging over them.

"More has to be done by the lenders and Government to prevent this happening, but also insurers have a duty of care to ensure their cover is accessible and affordable to all and consumers need to be aware of the options open to them."

Bad Credit Loans: A Good Option for Bad Times

UK Consumers turn to bad credit loans (http://www.loansbadcredit.org.uk) to get through temporary difficulties explains Andy Hygate from www.loansbadcredit.org.uk.

London, UK (PRWEB) November 22, 2008 -- UK Consumers turn to bad credit loans (http://www.loansbadcredit.org.uk) to get through temporary difficulties, explains Andy Hygate from www.loansbadcredit.org.uk.

The entire world is now worried about the economic future and even the most stalwart and dependable financial organisations have become shaky, unreliable, and reluctant to lend money to just about anyone. Meanwhile the confidence and hope of ordinary wage earners and small businesses is crumbling as they realise that it is nearly impossible to get loans they so desperately need.

Ministers are being pressured to force British banks to loosen their purse strings and lend critical funds to businesses and homeowners that are being squeezed by the credit crunch, but so far there has been little positive response. The financial institutions themselves are so concerned about their own weak levels of cash reserves that they are even afraid to lend to each other - much less to ordinary customers who face drastic challenges while trying to cope with higher prices and less job stability.

• Banks have increased the interest rates they charge their customers, despite the significant drop in the bank base rate. The base rate is now at around three percent, which is the lowest it has been in half a century. But the average annual interest charge on credit cards has climbed to nearly 18 percent.

• Rates on store cards are even higher in many cases, with many merchants charging 25 percent or more. High Street chain shops like Principles, Karen Millen and Oasis, for example, have been known to charge close to 29 percent.

• But these high rates - and the conspicuous lack of personal and business loans - are happening while the Insolvency Service reports alarming rates of personal bankruptcy. Insolvency in the UK has soared approximately 12 per cent within the past three or four months, and about 175 people each day were declared bankrupt in the third quarter of the year.

• The Guardian also reported that company liquidations have also surged by 25 percent in the past three months, a figure that represents more than a 10 percent rise from the previous quarter. So far this year the rate of liquidations has grown by more than 26 percent when compared to figures for 2007.

Those who do become insolvent face an uphill battle in terms of their financial future, too, because while they attempt to make a new fresh start, conventional lenders reject their requests for loans due to their lowered credit scores and damaged payment histories.

But bad credit lenders are still lending just as much now - and in fact much more than they normally do - because they specialise in loans made to people with less than stellar credit. These non-traditional credit companies base their whole fundamental business on serving customers and small businesses who have bad credit, low credit scores, and less income and assets - so they actually make more loans during times like these when banks and other conventional lenders turn customers away and reject mortgage applications.

Those who have experienced a bankruptcy, trouble paying their mortgage on time, or a tightening of credit card credit limits can typically get loan approval without any difficulty through these bad credit lenders.

Some British consumers use bad credit loans - which earned their name because they are made to those with poor credit - to get through temporary difficulties such as a short-term budget crisis or loss of employment. Others use them for longer term financing, such as car loans, property remortgaging, or business capital. Whatever financial needs one may have, loans for bad credit (http://www.loansbadcredit.org.uk/loan_quote.html) can offer a helping hand - and the necessary funds - to get through this tough economic period.

How To Turn The Credit Crunch Into a Credit Bounce

With the current economic situation many of us find ourselves in difficult times, although there is no need to suffer in silence. Harrington Brooks, a UK-based company, offers debt relief to all those who need debt help with their new range of debt solutions.

(PRWEB) November 21, 2008 -- There was a time -- last season, perhaps -- when crunches were considered good. Back then they were called ab crunches and made your body look amazing. These days, crunches are bad for your wallet and go by multiple names: credit crunch, financial crunch, cash crunch. With all the bad news going around, we're hoping to give you something to smile about.

What does the credit crunch mean for you? It could mean that your health will suffer from all the stress. Your repayments may increase and you will not be able to pay them all. Having unpaid bills would make anyone feel guilty, and worse, anxious.

You need to try to settle your debts or/and make repayment arrangements with your creditors. Try not to enter into any new credit agreements and focus on paying off what debts you have right now.

The credit crunch causes a reduction in the availability of loans and other types of credit. This has been going on for the last year. We also saw an increase in the amount of bad and toxic debt: the Bank of England estimates toxic debt losses at £1,800bn. Banks hoard cash and do not want to risk defaulting clients. It also means that prices for goods and services are increasing.

Harrington Brooks has new services to help customers get rid of their debt and focus on making the rest of their lives as attractive as their wallets: , a, and . There is also a banking account (http://www.harringtonbrooks.co.uk/extradirectbank.php), guaranteed if you can proof your identity, which is backed by Extra Direct, for all clients including those people who have filed for bankruptcy. This is in addition to debt management plans (http://www.harringtonbrooks.co.uk/debt-management.php), individual voluntary arrangements and loans & remortgages. This means that your life can improve exponentially when you use the services offered by Harrington Brooks.

If you're feeling stressed out just thinking about the amount of debt you have, why not read the personal finance blog or section for advice on how to manage your finances. You will find advice on things such as debt management, IVA (http://www.harringtonbrooks.co.uk/individual-voluntary-agreement-iva.php) and personal bankruptcy (http://www.harringtonbrooks.co.uk/bankruptcy.php) besides the occasional posts about how to live a good quality of life on a budget.

Harrington Brooks (http://www.harringtonbrooks.co.uk) is one of the longest established financial practices in the UK, with an unrivalled reputation with Government Legislative Bodies, Regulators and Creditors alike.

Established in 1998, Harrington Brooks offers people who are in debt a full range of solutions, all under one roof. We have helped over 40,000 clients by repaying over £130 million of debt through Harrington Brooks. Further details on our range of financial solutions can be found at www.harringtonbrooks.co.uk, or by speaking to one of our expert advisors on 0808 131 0040.