important new rules for divorces after 2008

[livealittle]

tax exemptions for the children and get the IRS form signed at the divorce signing. You can no longer include a copy of the divorce decree as proof.

here's the link to the form          http://www.irs.gov/pub/irs-pdf/f8332.pdf


and here's to the link with the rules     http://www.irs.gov/formspubs/article/0,,id=207333,00.html  please note the last line in the instructions:

Post-1984 decree or agreement. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent can still attach certain pages from the decree or agreement instead of Form 8332. For any decree or agreement executed after 2008, Form 8332 or similar form must be used.   



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The new Saver's Credit is for filing year 2008.


Saver's Credit

The saver's credit is designed to help low- and moderate-income workers save for retirement. A taxpayer probably qualifies if his income is below certain limits and he contributes to an IRA or workplace retirement plan, such as a 401(k). Income limits for 2007 are:

$26,500 for singles and married taxpayers filing separately
$39,750 for heads of household and
$53,000 for joint filers
Also known as the retirement savings contributions credit, the saver's credit is available in addition to any other tax savings that apply. There is still time to put money into an IRA and get the saver's credit on a 2008 return. 2008 IRA contributions can be made until April 15, 2009. Form 8880 is used to claim the saver's credit


here's a link to the info about some tax credits

http://irs.gov/newsroom/article/0,,id=202107,00.html?portlet=7

[m_t]

Do you know how much the credit is? As in - a percentage, a set amount...?

This is great info - please keep it coming over the coming weeks as we approach April 15!

[livealittle]

I think there were links to figure it up depending on your situation on the IRS website.

[livealittle]

Do you know how much the credit is? As in - a percentage, a set amount...?

This is great info - please keep it coming over the coming weeks as we approach April 15!

I read over the form and it looks like it is a percentage up to 1/2 of the difference in some other figures from your 1040.  There are also limitations besides the income limits.  IF you are above the income limits it doesn't look like there are any phase outs and you just don't get to take any credit at all.

this is only for people who contributed to

roth IRA
Traditionsl IRA
employer sponsered elective deferral plans such as a 401K


you can make contributions to IRA's for 2008 up to April 15, 2009.