Tax Season 2007
Tax season is here, and I imagine everyone is rarin' to go! (Okay, maybe not everyone, but I'm really excited!) Overall, two majors changes have occurred (well that I care to note anyway), one is on the federal telephone excise tax - taxpayers are entitled to a refund on this, the standard refund amount ranging anywhere between $30 - $60 depending on the dependents claimed for the year, and secondly, taxpayers have the option of direct depositing their refunds into more than one account. A good idea, as one can segregate a portion of their refund to contribute to their IRA! However, contributions made in this manner will count only for the current year in which the contribution had been made, so if you are one of those who are waiting on their refund to make a contribution for tax year 2006, you will still have to resort in cutting a check. However still a great idea in my book as it encourages more Americans to save using their refunds!
Intuit's Tax Freedom Project just came out on the web yesterday; you are eligible for free filing of your federal return if your adjusted gross income is below $27,000, qualify for the Earned Income Credit, or performed in active military service for 2006. It has been in my experience for these guidelines to change as they did last year (they had increased), so if you don't quite make the cut, I would certainly give it a few weeks (possibly mid-February), or you could contribute to a Traditional IRA (or opt instead to claim the Tuition and Fees deduction instead if you qualify)...
In which case that has also changed too as now the Tuition and Fees deduction can now only be claimed on Form 1040, a last minute revision as it just been reinstated after the final forms were in draft. However, I'm not seeing this in its approprate section on the 1040... It would appear that in order to claim this deduction you must wait until early February according to the IRS.
Anyway, good luck, and if things are a little beyond yourself, don't hesitate to bring them to your favorite tax preparer - they'll certainly appreciate your business!
Intuit's Tax Freedom Project just came out on the web yesterday; you are eligible for free filing of your federal return if your adjusted gross income is below $27,000, qualify for the Earned Income Credit, or performed in active military service for 2006. It has been in my experience for these guidelines to change as they did last year (they had increased), so if you don't quite make the cut, I would certainly give it a few weeks (possibly mid-February), or you could contribute to a Traditional IRA (or opt instead to claim the Tuition and Fees deduction instead if you qualify)...
In which case that has also changed too as now the Tuition and Fees deduction can now only be claimed on Form 1040, a last minute revision as it just been reinstated after the final forms were in draft. However, I'm not seeing this in its approprate section on the 1040... It would appear that in order to claim this deduction you must wait until early February according to the IRS.
Anyway, good luck, and if things are a little beyond yourself, don't hesitate to bring them to your favorite tax preparer - they'll certainly appreciate your business!
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