Tax and financial advice from the Silicon Valley expert.

California stops accepting applications for first-time homebuyer credits but new homes credit still available

California has adopted tax credits for new home purchases and first-time homebuyers. The credits are available for qualified taxpayers who purchase a qualified residence on or after May 1, 2010 and before January 1, 2011. Since there are ceilings on the total credits available for all taxpayers, it will be wise to apply for them early.

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Health Care Act includes big Medicare Taxes for high income taxpayers

The most significant tax increase for high-income taxpayers, for Medicare taxes, will become effective in 2013. There will be an additional 0.9% Medicare tax on earned income exceeding $200,000 for single persons and $250,000 for married persons filing joint returns. In addition, at 3.8% Medicare tax will apply to certain UNEARNED income.

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Tax and financial advice from the Silicon Valley expert.