When it comes to fill your taxes what is the first thing you do. Looking for information on google, ask.com or browsing IRS website or you simply call to the local CPA/Tax office for an advice.
The nature of tax filing is that you as taxpayer have to be aware of changes and use them for your benefits. In reality it does not happen, a person got advises from friend co-worker and relative. First you put yourself trough the test of the tax knowledge.
This year tax changes
Educational credits - This year Congress prolonged tuition deduction allowing to write off as much as $ 4,000, a $ 1,120 with the savings in 28% bracket
Green rewards- If you made your house energy efficient by replacing windows, furnace you could deduct up to $ 500 and $ 200 for windows.
Driving Green will be beneficial as well - If you driving hybrid car you could deduct from $ 250 to $ 2,600 depending on model and year and sale date.
Child Care - If you paid someone to take care of your kids (13 or younger) you would be able to take child dependent care credit. Up to $ 1,050 for one child and up to $ 2,100
Sales Taxes Deduction - You can estimate your sales taxes deduction or if any large items were purchased receipt should provide firm evidence for deduction.
Of course to be a family guy and taking care of all the savings is a tough job. It will be paid when going to the tax office you know what is due to Uncle Sam and what is to you.
Remember so many people forget to claim their deductions and IRS statistics are full of unclaimed deduction. Put your knowledge into the test and see a green reward for your work.
eFamily Finance
Vladimir Dubchak
Posted January 24th, 2007 by vladdubchak
