Accounting News and Notes

The United States Congress passed and President George W. Bush signed into law the Economic Stimulus Act of 2008.  This Act provides for economic stimulus payments to be made to over 130 million American households, and you may be entitled to a payment of up to $600 ($1,200 if filing a joint return), plus additional amounts for each qualifying child.  The IRS says it will begin sending the one-time payments starting in May. 

There are basically three types of taxpayers who will be affected:

• Those that file their tax return for 2007
• Those that don’t file a return but have a total earned income of $3,000 or more
• Those with adjusted gross income

Affects of Economic Stimulus Act

• For the taxpayer who files annual returns, to receive a payment in 2008, you will not have to do anything more than file a 2007 tax return.  Of course, the IRS will determine your eligibility and amount of payment.

•  For those that don’t have to file a return that have a total of $3,000 or more in earned income, Social Security benefits, and/or Veterans payments, you may receive a payment of around $300 ($600 if filing jointly).  You might also receive an additional amount of $300 for each child that qualifies for the child tax credit. 

• For the taxpayer with adjusted gross income (AGI) of more than $75,000 ($150,000 if filing jointly), the payment will be reduced or phased out completely.

Important things to know about the Economic Stimulus Act of 2008:

• To qualify for payment, an individual, spouse and any qualifying child must have a valid Social Security number.
• Individuals cannot receive a payment if they can be claimed as a dependent of another taxpayer.
• Individuals cannot receive a payment if they filed a 2007 Form 1040NR, 1040NR-EZ, 1040-PR or 1040-SS.
• All individuals receiving payments will receive a notice and additional information before you receive the payment.  If you have questions, you can visit the IRS website at www.irs.gov.

 For any other questions, contact me at hiscpa@yahoo.com

Everyone has a different definition of recession but they all come down to one meaning:  A significant decline in economic activity over a period of a few months.  Most of the time, the decline comes after a peak in the economy.  Could it be that the real estate market was the Silicone Valley of 2008?  It seems that no one wants to actually say the word “recession” for fear that we might wake up and realize that we are already in one.  But if you look around you, listen to what people are talking about and saying, there are so many people in high-level positions who have lost their jobs and are desperately searching for something else.  In our area alone, we know of many who have found themselves in this situation and the numbers continue to grow.  People everywhere are losing their homes in foreclosures as they default on mortgages. 

As I write this, Bear Stearns, a well-known investment banking company, has had to turn to JP Morgan Chase & Co and the Federal Reserve Bank of NY for emergency funds to keep them afloat.  Bear Stearns plays a large role in debt markets, especially those securities backed by mortgages.  The Federal Reserve Bank supported the arrangement with JP Morgan and said that it would continue to provide the markets with liquidity as necessary.  They haven’t done this since the Great Depression.

For the same reason the government doesn’t use the word recession, I don’t like using it either as it seems to cause panic in otherwise rational people.  This is not the time to run out and sell all your stocks and other investments - it is the time to sit back and wait-be patient.  Things will get better but as with anything worthwhile, it takes time.  Sure it’s time to pull in your purse strings, watch what your spending, monitor your gas usage, save the expenditures for later, but it’s not a time for panic. 

This summer, our family has the unique opportunity to go to a Navajo Indian Reservation and serve as missionaries through our church.  We are very excited, not only about the opportunity so serve our church, but to serve God and be His hands and feet while building relationships with the Navajo people.  It will be a great experience to share God’s love with all the wonderful people there and the opportunity to do it as a family is a dream come true for all of us.

Pueblo Pintado is a Navajo Indian Reservation located in the NW corner of New Mexico.  It is a very desolate area and most of the residents live in poverty and most students rarely even graduate from high school.  While it may seem incomprehensible in the U.S., many of the homes do not have electricity or indoor plumbing.  There is a very high unemployment rate, which leads to a high rate of alcoholism, drug abuse and violent crimes.  With all that being said, they are a wonderful, warm, loving group of people who are so appreciative when we go out and spend a week with them just loving on them, giving them undivided attention and a safe lap to crawl into.  They are slow to trust and still hold strong to their native culture.

We will be there the week of July 12th - July 19th and hope to do vacation bible school for the children, adult bible study, construction, senior home care, sports camp, community nights and more.  We hope to spend the week demonstrating God’s love through our hard work and service to the Navajo people.

Of course, none of that is possible without financial and prayer support.  The trip is going to cost a little over $750.00 per person, which will cover all our travel, boarding and meal expenses.  We would be honored if you would consider helping us in our fundraising effort by giving of your financial support and/or prayer support.  Both of them are very much appreciated and without the support of wonderful friends and family like you, these trips just wouldn’t be possible.

Thank you for any help you can give us and for contributing in your own way to this wonderful mission!  If you would like to make a financial contribution, please send it to John Dillard, 1940 Woods River Lane, Duluth, GA 30097.  If paying by check, please make it out to Sugarloaf UMC.

In Him,

John Dillard

Sometimes we get so caught up in the hustle and bustle of everyday life, we forget to make time for the things matter most…nourishing our soul.  If we don’t make time for God’s feeding of our hearts and minds, everything else suffers.  Some thoughts:- Neglecting devotions will cause you more problems, quicker, than just about anything you can think of. Spending unrushed time alone with God in His Word is like a fountain of refreshment being released from the core of your being.-  When people think of you, how you spend your time, and were to describe who you are by your habits, would one of those habits be your daily quiet time?  You can celebrate God in a crowd, but you can only get to know God one on One.-  Our daily times in the Word are not necessarily designed to produce theologians but they are designed to produce disciples.  The Word of God is food for your soul, before it’s fodder for your ideas.-  Enter the Bible daily and there will be a beautiful dusting of heaven on everything you do.  That is what will distinguish you from everyone else in the world, more than trimmings or trappings for those will only slow you down.