HOME
 OUR INFORMATION
Schedule A Itemized Deductions
Schedule C  Business Income and Expenses
schedule E Rental Income
FORM 8829: BUSINESS USE OF HOME 2006
RETIREMENT
GENERAL INFORMATION
 
 


This page is under construction SO PLEASE CHECK IRS OR OTHER SOURCES .

MISC. TAX INFORMATION:   (some items may not be up to date due to current legislation)

Here are some tax highlights and changes for 2006-2010.

1.   A $1000.00 tax credit for children under 17. 

2.      $2,500.00 tax credit for college expenses FOR FOUR (4) years-100% of the  first $2,000.00 and 25% of the second $2,000.00 of expenses (SEE #27 FOR     MORE INFO) for college. 

3.      2,000 tax credit for college expenses (for anyone) AFTER 4 YEARS of college 20% of up to $10,000.00 in qualifying expenses.  
 
4.      $2,500 deduction each year for interest paid on a college loan.
 
5.      Capital Gains rate is 10% or one bracket less than your tax bracket.

6.      Couples can exclude $500,000.00 in gains from the sale of their home once each two years.  Singles can exclude $250,000.00.

8.      A Roth IRA allows you to put money in that is taxed, grows tax free and is tax free when withdrawn if you are 59 ½.  You can put $2,000.00 OR MORE into this account each year.  You can withdraw money to buy a first home or for education expenses from this new IRA or an old IRA without penalty; however you will have to pay tax on the entire withdrawal from an old IRA and/or pay tax due on interest gained on new IRA.  There are some restrictions.

9.      You can put $500.00 per child per year into an education IRA (no deduction) but pay-out is tax free.

10.   Also, look at 401-K accounts.  Be cautious of holding all company stock as a company can go bankrupt resulting in loss of your retirement savings.  Hold only the company stock that is required.  If you are older- invest in fixed rate securities.  You cannot afford to lose your life savings.  YOU SHOULD NOT BE IN THE STOCK MARKET PAST THE AGE OF 55 UNLESS YOU USE MONEY YOU CAN AFFORD TO LOSE!                                                                                                                                                
11.   Mileage rates are 55 cents for business, 24 cents for moving and medical and 14 cents for charitable.                                                                                                                           
12.   Lower income taxpayers receive a tax credit for contributions to a retirement account.

 13.   At 70 ½ you can make a qualified charitable contribution from your IRA and      do not have to include this in your income.  This is a windfall for taxpayers that have large amounts of their social security taxed. NOW ON A YEAR BY YEAR BASIS.                                                                                                                                                 
 14.   There WERE new energy credits for your home: NOW FOR 2008 AND 2009***NOW YOU GET UP TO $500.00 IF YOU HAV NOT GOTTEN UP TO $500.00 BEFORE!                                                                                                                                              a.      10% up to $200 on insulation, windows or roofing or other products that   reduce heat eat gain or loss for a home

b.      100% up to $300.00 for heating systems and furnaces

c.      Hot water heaters and some other energy efficient appliances                      
                                                                                     
15.   Up to $3400.00? for a hybrid vehicle.

16.  FIRST-TIME HOMEBUYER 10% CREDIT UP TO $8,000.00 YOU CAN KEEP
OTHERS MUST PAY BACK THEIR "LOAN"  ..WITH EXCEPTIONS                                   
17.  Rules for charitable contributions: 

a.      property must be in good used or better condition

b.    cash contributions must be supported by a bank record.

18.   Earned income credit increases to incomes up to $52,00.00 AND OVER AND UP TO THREE QUALIFYING PEOPLE ARE ELIGIBLE

19.   Phaseouts of exemptions, tax credits and other offsets begin at $112,000.00
                                                                                                                                                               20.   Standard deductions are

a.      $5,450.00 for singles

b.      $10,900 for married filing joint

c.      $8000.00 for head of household.

21.   Transportation workers get 75% of meals or meal allowance.

22.  Expired tax breaks WERE extended:

a.      Educator expenses for teachers up to $250.00

b.      Tuition and fees deduction

c.      Clean fuel vehicles

d.      State and local sales taxes

e.      Others- REAL ESTATE TAXES FOR YOUR HOME IS 100% DEDUCTIBLE  

23.   Roth 401k plans are now available.  You pay taxes on the contributions; however, withdrawals are not considered income.

24.   100% Estate tax exclusion FOR 2010 is SET TO EXPIRE IN 2011 TO 0% EXCLUSION

25.   ALL THE BUSH TAX CUTS WILL EXPIRE IN 2010 ?

26.  Looking forward to 2010, There is a measure allowing you to convert traditional retirement plans to Roth plans and split the income between 2010 and 2011.  How this will happen and the taxation will depend on 2010 elections.

27.   The IRS has announced a new special section on the IRS Web site, www.IRS.gov.  The section is called “Tax Benefits for Education” and it provides informative information and answers and information for students and parents.  The section includes information on Code Sec. 529 plans, frequently asked questions, and two key changes under the American Recovery and Reinvestment Act [P.L. No. 111-5] that will be in effect during 2009 and 2010.  The first change involves an expansion of the list of qualified expenses under Code Sec. 529 college savings plans.  For 2009 and 2010, computer technology and equipment or internet access and related services to be used by the college student have been added to the list of qualified expenses.  That list also includes tuition, required fees, books, supplies, equipment and special needs services, as well as room and board for those who are considered at least a half-time student.  The other change is the introduction of the American Opportunity Credit, which modifies the existing Hope credit for tax years 2009 and 2010, expanding income guidelines and adding required course materials to the list of qualified expenses.  The maximum annual credit under this provision is $2,500 per student.

 

THIS IS BY NO MEANS AN EXHAUSTIVE LIST OF TAX CHANGES AND TAX REGULATIONS, IT IS HOWEVER, A LIST OF SOME OF THE MOST MEANINGFUL TAX REGULATIONS AFFECTING A MAJORITY OF TAXPAYERS.  EXACT FIGURES OF TAX SAVINGS, TAX DEDUCTIONS, TAX CREDITS, ETC. ARE NOT GUARANTEED.  YOU MUST CONSULT WITH YOUR TAX ACCOUNTANT, LAWYER OR TAX PREPARER TO DETERMINE YOUR EXACT SAVINGS, DEDUCTIONS, AND/ OR CREDITS.

 

©Steven E. Burns, 2006, 2007-2013                         information from IRS Publications

 
 
Top