Tax Planning Basics Tax planning is
a process of looking at various tax options in order to determine
when, whether, and how to conduct business and personal
transactions so that taxes are eliminated or reduced. There are
countless tax planning strategies available, particularly if you
own a small business. For more details, read
The Basics of
Tax Planning.
Tax News
2007 Social Security and Self-Employment Tax
Rates The IRS is committed to doing more audits, and
better audits, in an effort to clamp down on unreported and
underreported income, known as the tax gap. But ultimately, audits
alone are not the answer. For further details, please read
Gov't Can't Audit Its Way Out of Tax Gap: IRS
Official.
New Standard Mileage Rates
The IRS has released the new 2007 figures for determining various
standard mileage rates for tax purposes. To learn more, please read
Standard Mileage Rate Unveiled for 2007.
Expired Tax Provisions With the 2006 tax year
rapidly drawing to a close, this is a great time to do some
last-minute tax planning. Of course, this assumes that you know all
the tax rules needed to make informed decisions. Unfortunately,
navigating through the tax world can be extremely difficult when
important tax updates are unreasonably delayed. This certainly
applies in the case of a number of important tax provisions that
await legislative resurrection after expiring at the end of 2005.
For more on this story, please read
Failure to Renew
Expired Tax Extenders Subject of Concern, Debate.
Social Security Payments Increase Social Security
taxes are on the rise, for some people at least. The amount of
Social Security tax you'll be paying for 2007 may be higher than
for 2006, depending on how much you make, but the actual tax rate
really hasn't changed a bit. To learn more about the tax hike,
please read
Social Security, Self-Employment Taxes Set for
2007.
Income Tax Preparation GainsKeeper Compatible Tax
Tips Newsletter Continuing our effort to provide you with valuable
tax information, we will periodically update this page with useful
tips and information on issues that you commonly deal with. Sign up
for our Free E-mail Newsletter E-mail Address: A New Tax Year Means
New Tax Changes to Consider Like the weather, our tax laws are
subject to frequent changes. Unfortunately, there continue to be
many traps for the unwary and uninformed taxpayer.
Here are some highlights of changes in effect for the 2006 filing
season: Personal exemption amount. This amount has increased to $3,
300 per person for 2006. Standard deductions. Standard deduction
amounts have increased for 2006 as follows: singles and married
filing separately, $5, 150; heads of household, $7, 550; married
filing jointly, $10, 300. State and local general sales tax
deduction. Through the end of 2007, individual taxpayers may still
elect to deduct
either state and local income taxes or state
and local general sales taxes as an itemized deduction on their
federal income tax returns.
Credit for federal telephone excise taxes paid. For 2006 only,
individual taxpayers may request a telephone excise tax refund via
their Form 1040. The standard refund amounts depend on the number
of exemptions claimed and can be as high as $60 for four of more
exemptions claimed.
Tax Guide 2008
Deciding Who Must File an Income Tax
Return If you're reading this material, you probably don't
have any doubt about whether you need to file a tax return. To
remove any residual doubts you may have, though, please read
Who Must File a Return Choosing the Right Individual Income
Tax Form When it comes to federal income tax forms, there
are three basic versions available to individuals: Form 1040, Form
1040A, and Form 1040EZ. There are rules for each of these forms
regarding the taxpayers who can or must use it. To find out which
individual tax form applies to your situation, read
Which
Tax Form Should You Use
Tax News
Tax Return Changes Highlighted Taxpayers
will notice some changes in filing their 2006 tax returns, and the
IRS is trying to educate filers ahead of time. For further details,
please read
IRS Officials Highlight Tax Return Changes for
Individuals.
New Federal Tax Legislation
The House of Representatives overwhelmingly approved comprehensive
tax, healthcare and trade legislation on December 8, 2006, meeting
an election year promise to extend a group of expiring tax
provisions before the 109th Congress adjourns. For a closer look at
the new tax law changes, please review
Final Tax Package
Extended; Congress Adjourns.
New Options for IRA Funding When calculating your
annual income taxes before the April 15 deadline, certain filers
have the option of sheltering some additional income, tax-free, in
an Individual Retirement Account (IRA). And even though the
calendar has turned to a new year, that IRA contribution is
considered valid for the tax year that just ended. But with all the
holiday spending and likely increases in health coverage premiums
for the new year, where do you actually find the money to make that
tax-advantageous IRA investment Thanks to new federal legislation,
you may have another source for funding your deposit--your tax
refund. For more on the new tax law changes, take a look at
New Pension Law Allows Tax Return-Funded IRAs.
Tax Audits Discussed The IRS is committed to doing
more audits, and better audits, in an effort to clamp down on
unreported and underreported income, known as the tax gap. But
ultimately, audits alone are not the answer. For further details,
please consult
Gov't Can't Audit Its Way Out of Tax Gap:
IRS Official. Tax News Archive For more news stories and
features on federal, state and payroll tax issues and how they may
affect you,
read the listing of articles in the
archive.
Tax Tips Newsletter Archive To read newsletters from previous
months, browse the
Tax Tips Newsletter Archive.
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Child Tax Credits, Child Care Tax Credit, Child Tax Credit
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Federal Income Tax: Child Credit
Information
If you have children, you know what a blessing they can be -
especially during tax time. If you have dependent children, you
may be able to claim a federal income tax child credit that is
set at $1, 000 per qualifying child in 2003 and 2004. Thanks to
legislation enacted in 2003, taxpayers who claimed a $600 per
child tax credit on their 2002 returns should have received a
$400 per child advance of the increased $1, 000 per child
credit tax law amount during the summer of 2003. card credit processing service
Answers to Your Child
Tax Credit Questions
Do you have child tax credit questions We can help. For all
child tax credits, a qualifying child must remain under age 17
through the end of the year and be either a U.S. citizen or
resident alien. A qualifying child for the child credit tax law
must also meet the dependency tests, and be
your natural or adopted child, grandchild or great-grandchild,
stepchild, or a foster child. According to the child care tax
credit, dopted child includes a child placed with
you for adoption even if the adoption has not been finalized. A
foster child must have lived with you the entire year to
qualify for child tax credits, unless the child was born or
died during the year. center credit service union
Child Care Tax
Credit
Like most of the child tax credits and other breaks that
have been enacted recently, there is an income limitation on
the people who can claim this credit for the federal income tax
child credit. The phaseout of the credit begins at modified
adjusted gross income (AGI) of $110, 000 for joint filers, $75,
000 for singles and heads of household, and $55, 000 for
marrieds filing separately. You will lose $50 of your total
child credit for each $1, 000 (or fraction of $1, 000) of your
modified AGI that exceeds the applicable threshold. For this
purpose, modified AGI includes the amount shown on Line 35 of
Form 1040 or Line 22 of Form 1040A, plus any foreign earned
income exclusion, foreign housing exclusion, and income from
U.S. possessions, if any. card credit service wireless
For more information, see our discussion of how to
claim the credit. CompleteTax Advantages credit security service union
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