1. Educator’s Deduction:
Reinstated for another year - maximum $250 deduction from income.
2. Sales Tax Deduction:
Taxpayers who itemize will still have a choice of claiming EITHER sales tax or state income taxes again for
2007. The IRS is providing tables to determine this amount (you can add sales tax from motor vehicles and
boats, although it may be limited) or you can use your actual sales tax receipts. NOTE: The deduction is
EITHER SALES TAX OR STATE INCOME TAX-NOT BOTH!
3. Business mileage:
The deduction is 48.5 cents for 2007 and is scheduled to be 50.5 cents for 2008. Please remember the
importance of mileage logs.
4. Contributions:
New Laws regarding Non-cash donated (clothing, household goods, etc.) must be in good or better shape
and receipted. Perhaps along with your list of items, take photos for your records. Starting 8/17/06 Cash
contributions must be documented by: cancelled checks, bank records, credit card statements or
contribution receipts. It appears payroll stubs may be sufficient however cash logs will not. This has become
a major source of IRS inquiries.
5. Standard deductions:
Standard diductions and Exemption credits increased.
6. Tuition:
Tuition and Fees deduction was also extended. The Hope/Lifetime Learning Credit is still available.
As you see from the above list; once again many laws were just approved and signed by Congress at the
end of the year. These may have some last minute effects on your income tax returns and we are monitoring
these closely. Again we are ready to HELP!
A printable TAX ORGANIZER is available on our home page. Simply complete it and drop it off or call for an
appointment. Snow birds and out of area service is available.....give us a call....651.786.6425 or E-Mail.
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