It's already tax time again!

Wow, where did the year go? KaiPerm can help you start preparing for the 2009 tax season. There is good news and some tax breaks to consider for 2009. Check these suggestions out. And, of course, talk with an advisor first before making any tax related decisions.

• First time homebuyers - The first time homeowner tax credit has been extended. Just keep your new home (primary residence) for three years and the credit does not have to be repaid. Talk with your tax preparer for specifics. Note: See KaiPerm for your home loan. Your credit union has competitive rates and super service. With home prices low, it may be a good time for you to buy.

• Unemployment benefits - If you received unemployment benefits in 2009, the first $2,400 is exempt from federal taxes.

• Use your KaiPerm credit card to make a charitable donation in 2009 even if you don't pay the bill until 2010.

• Medical expenses are deductible if they exceed 7.5% of your adjusted gross income. If you are close to the 7.5% threshold, consider scheduling and paying for the necessary medical procedure before December 31, 2009.

• Cash gifts - You can give up to $13,000 per person to any number of individuals in 2009 without having to file a gift tax return. The limit is $26,000 if you are married and the gift is from you and your spouse. Talk with your tax advisor to make sure you do it right. Note: Why not use a credit union account to set up the gift deposit?

• College expenses - Are you a parent with college students? You can claim up to $2,500 a year to cover higher-education expenses. Note: Now is a great time to open a checking account for your college student.

401K tax tips - don't cash out

• It has been reported that forty six percent of workers who changed or lost their jobs took cash from their 401K plans. An employee who cashes out a $5,000 retirement balance at age 25 would receive a check for $3,500 after taxes and penalties. If left in the account, the $5,000 may grow to $75,000 at normal retirement over 40 years at 7%. A recent study stated that 17% of workers who changed jobs and took money from their 401K spent it on items like cars, boats or everyday expenses.