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AccountingNerd8
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Joined: 13 Jan 2009
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Posted: 16 Jan 2010 at 09:51 \| IP Logged

Taking my exam next month. I have been using the wiley 2009 book, which says that "Unemployment compensation is fully included in gross income by the recipient." I just picked up the Gleim 2010 book from the library at work and it says that "For 2009, the first $2,400 of unemployment benefits received are excluded from Gross Income. Supplemental unemployment benefits from a noncontributory fund that is company financed are taxable as wages (not unemployment).

Do i need to go get the Wiley 2010 book? I'm really starting to freak out now.

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kj_nyc
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Posted: 16 Jan 2010 at 11:52 \| IP Logged

I don't think so, although it couldn't hurt to browse through it at your nearest bookstore. This page on the IRS web site sums up and provides links to more details on the latest tax law changes in the 2009 ARRA: http://www.irs.gov/newsroom/article/0,,id=204335,00.html

Also, the Becker updates are good for keeping current on updates even if you don't use Becker: http://beckerkb.custhelp.com/cgi-bin/beckerkb.cfg/php/enduse r/std_alp.php?p_sid=dmY23-Cj

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EAK5455
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Posted: 16 Jan 2010 at 11:58 \| IP Logged

I wouldn't recommend buying the new book. The only significant changes that came out for the 2009 tax year are attributable to the
American Recovery and Reinvestment Act (ARRA) which was signed into law in early 2009 and later amended for a few changes which affect 2010
and later. You may want to read the 2009 1040 instructions for "what's new" on page 6 for a comprehensive listing of the 2009 changes.

Of the changes the following are the only really substantial changes:

1. The first $2,400 of unemployment compensation is excluded from gross income.

2. Cancellation of debt income can be deferred to 2014 and may be amortized over a 5 year period.

3. The American Opportunity credit builds on the hope credit to create a much more favorable education credit.

4. Motor vehicle property taxes can be deducted from AGI regardless of whether or not the taxpayer itemizes (either Sch A or Sch L (new)
).

5. The floor on personal casualty losses is $500 for 2009, not $100 as in 2008.

6. Most taxpayers who have earned income will get the $400 Making Work Pay credit.

7. There are several new energy credits for taxpayers who purchase plug-in vehicles like the Nissan Leaf or Chevy Volt (qualified plug-in
elective drive motor vehicles).

8. The EIC credit is now extended and increased for taxpayers with 3 children. Previously, it capped out at 2 children.

AccountingNerd8
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Posted: 16 Jan 2010 at 12:23 \| IP Logged

thank you both! I didn't even think to look at the irs website. very helpful!

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AUD- July 7, 2010 PASS
FAR- February 11, 2011 PASS! Last attempt before BEC expired

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