TOP 10 TAX PREP TIPS
1. MFJ vs. MFS – married filing joint and married filing separate. Try both ways. It could save you taxes.
2. You could receive up to $500 max energy credit back on your tax return for home improvements.
3. If you are in business for yourself, make sure to keep your mileage for business use. Mileage rate for 2007 is 48.5 cents.
4. Youve been supporting a war thats been over for years. A refund is available for you called phone excise tax credit up to $60 max.
5. Have some kiddies at home? Theres an increase in the Kiddie Tax for a child under age 18, any unearned income over $1,700 will be taxed at parents tax rate, not the childs.
6. Interested in a hybrid vehicle? A hybrid vehicle credit is now available for the purchase of such a vehicle thru Dec. 31, 2010. There is a max of $3,400 credit with a few stipulations.
7. All charitable cash contributions must have a receipt from the organization indicating; amount, date and name of the charitable organization. In other words, use checks if putting money in the collection plate at church or for the sidewalk Santa.
8. Since Aug. 17, 2006, no deduction will be allowed for non-cash contributions of clothing or household goods that are not in good condition or better, unless total value is over $500 and the taxpayer attaches a qualified appraisal to her/his return.
9. For ages 50 or older, your contribution into an IRA for tax year 2006 is $5,000, up from $4,500 last year. Everyone less than 50 is $4,000, same as last year. You can contribute up until you have your taxes prepared or April 15, 2007, whichever is closest.
10. For those of you who are 70 ½ years and older; you are required to start taking from your IRA account (RMD Required Minimum Distribution). Good news, though! If you dont need the money, for tax year 2006 and 2007 only, you can directly transfer funds to your favorite charitable organization up to $100,000 per year. That could save you a bunch in taxes depending on your tax bracket.
Contact your accountant for more details on any of these tax tips.