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1:01	Boston.com Chat Producer - Hi chatters .. welcome to the IRS tax chat with Peggy Riley. Peggy will be with us in a few minutes.

1:11	[Comment From speccr] if i bought a new car on presidents' day, am i out of luck on the tax credit for next year?

1:12	Peggy Riley - The tax credit for new cars is available for vehicles purchased on or after Feb 17, 2009.

1:13	[Comment From Jill] Hello, Sorry if I'm jumping in too early...

1:13	[Comment From Jill] I had a question about the updated first-time home buyer credit. I am eligible, and submitted a 1040x to gain the $7,500 credit, though now see there is an $8,000 credit recently made available. Should I file another 1040x to request the new credit instead of the old? Thank you.

1:13

Peggy Riley - Jill - if you filed a return and already filed an amended return, you should wait to receive any refund that you may be due before filing another return. If you owed money, you can amend right away. The $7,500 credit is a loan which needs to be repaid over the next 15 years, but the new $8,000 credit does not have to be repaid.

1:15	[Comment From Richard Collier] My son made 1200.00 working for the college he attends. No federal tax was withheld.

1:15	[Comment From Richard Collier] does he have to file a federal return?

1:16	Peggy Riley - Richard - he is not required to file a return, but he may want to if he had state taxes withheld.

1:18	[Comment From Jerry Rosman] My accountant just finished my '08 taxes. I owe in the Federal in the mid 5 figures because I had to liquidate my IRA acct. I did have a large amount taken out for Federal & State. I do not have the money to pay them. What should I do?

1:19

Peggy Riley - Jerry - first of all, make sure you file your return on time. If you can't pay the full amount due, you may qualify for an installment agreement. You can apply for an installment agreement online at irs.gov, by filing a Form 9465 with your return or by coming to an IRS office. This way, you can set up a payment plan to pay off what you
owe.

1:20	[Comment From RICH] If you have income under 1500.00 and no federal tax is withheld. do you still have to file? I filed last year because federal tax was withheld.

1:20	Peggy Riley - Rich - If you don't have any other taxable income you do not need to file. However, you may want to file if you had state taxes withheld.

1:21	[Comment From Janet Proctor] my husband and I file jointly....he received a 1099-B re: his Mass. Tax-Exempt Fund...what should he do on our tax form? ....... thanks.

1:21	Peggy Riley - Janet - not sure what the 1099-B was for but it should indicate if there is taxable income or interest that needs to be reported on your tax return.

1:24	[Comment From beantownnow09] If i have my tax returns prepared by a professional service...can that be used as a deductible expense? (what is the dollar limit?, if applicable)

1:25	Peggy Riley - Beantown - If you make a contribution to an IRA and then take the money out you would be subject to an early withdrawal penalty, which is an additional 10% tax.

1:27	[Comment From SR] Is it advisable to convert all my IRA's to Roth IRA's, in order to avoid higher taxes in future? I have perhaps $60K in traditional IRAs.

1:27	Peggy Riley - SR - You may want to look into Roth IRAs, you cannot deduct contributions to a Roth IRA but if you satisfy the requirements, qualified distributions are tax free.

1:28	[Comment From Jill] Thanks, so would I be eligible for both then, or if I receive the $7,500, return that, and re-amend for the $8,000?

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