Recovery act offers some tax breaks

(Pat Greenhouse/Globe Staff)

It's high tax season and the April 15 filing deadline is just around the corner. Jeffrey Pirner, H&R Block's district manager in Boston, recently spoke with Globe reporter Beth Healy about some of this year's changes in federal taxes and others to be aware of in 2009.

What are some of the big changes tax filers are seeing this year? The big thing on everybody's mind right now is the American Recovery and Reinvestment Act of 2009. There are a lot of great things in there for taxpayers, moving forward, in 2009. For 2008, there are issues around the recovery rebate credit.

What impact is the bad economy having on when and how people approach tax filings? If you're anticipating a refund, sometimes you'll file as early as possible, so you can get that money right away. It depends when employers distribute their W-2s and things like that. A lot of mortgage statements came out in February. And brokerage statements received an extension so they could file them by February 15th, where people may in previous years have gotten them in January. So a lot of people are just starting to do their taxes - they have everything now.

What about stock market losses? You must be seeing more people dealing with those? Yes, whether they cashed out their 401(k) or they've sold stocks at a loss, finding a professional to help you navigate that can help you to maximize your benefits and make sure that you file that correctly. You can deduct your capital losses against gains, up to $3,000. If you're in the lowest two tax brackets, capital gains are potentially nontaxable.

Not that most people will have capital gains this year, right? Right.

Are there tax consequences of the home foreclosures that many people have experienced? There are various provisions related to foreclosure situations or forgiveness of debt. It's fairly tricky and complicated. You just want to make sure that you sit down with somebody and get all that you're entitled to.

If people are feeling squeezed financially, how can they know if it's worth paying for tax assistance? With all the tax code changes taking place, and the uncertain economy, we think it's important. It's critical that you keep informed and stay up on things, and get everything that you're entitled to. And that's where a tax professional can help you navigate all the changes. We also need to help maximize your opportunities in the year ahead. There's something really for everybody in the Recovery Act.

When are you busiest, right before the deadline? We saw 23.5 million taxpayers last year, so we're really busy all year long.