| It's tax season AGAIN, and you should be | | | | |
| looking for those tax deductions that can | | | | 3. Charitable Contributions (there are new |
| legally lower you tax bill. | | | | record keeping rules that apply for cash |
| | | | donations) |
| Here are some of the typical deductions that | | | | |
| you want to make sure your tax preparer knows | | | | 4. Mortgage Insurance premiums for contracts |
| about so you get the write-off. | | | | issued after December 31, 2006 (this is NEW |
| | | | for 2007!) |
| 2007 Mileage Deductions | | | | |
| | | | 5. Mortgage Interest & Points |
| Business Mileage 48.5-cents per mile | | | | |
| | | | 6. Real Estate Property Taxes (on residences |
| Charitable Work Mileage 14-cents per mile | | | | not used for business or rental) |
| | | | |
| Medical & Moving Mileage 20-cents per mile | | | | 7. Sales tax you paid on retail purchases |
| | | | |
| Dependent Education Expenses | | | | 8. Investment interest on money borrowed for |
| | | | a property held for investment |
| There are two tax credits available to help | | | | |
| you offset the costs of higher education by | | | | 9. Job expenses you paid as an employee (if |
| reducing the amount of your income tax. They | | | | you were not reimbursed and if you are not |
| are the Hope Credit and the Lifetime Learning | | | | filing Form 2106) |
| Credit, also referred to as education | | | | |
| credits. | | | | 10. Tax preparation fees paid to a |
| | | | professional tax preparer |
| To learn about these credits, who can claim | | | | |
| them, what expenses qualify, and more, visit | | | | Schedule E Deductions for Rental Properties |
| the website and in the search bar type in | | | | |
| either "child education expenses" or | | | | If you own rental properties then the income |
| "Publication 970." | | | | and deductions go on Schedule E. Here are the |
| | | | deductions you can take on rental properties. |
| For dependents in daycare through middle | | | | |
| school, deductible expenses do not include | | | | Here is a partial list of Schedule E |
| tuition. However, after-school care expenses | | | | deductions you can take on rental properties |
| and a few other types of expenses are | | | | - for details visit the website and in the |
| deductible. Ask your tax preparer for advice | | | | search bar type in "schedule E." |
| and be prepared to supply the name, address | | | | |
| and federal tax ID number or social security | | | | 1. Advertising |
| number of the care provider as this | | | | |
| information is needed on the tax return. | | | | 2. Auto & Travel |
| | | | |
| For each dependent, your tax preparer will | | | | 3. Cleaning & Maintenance |
| need the child's full name, date of birth and | | | | |
| social security number. | | | | 4. Commissions |
| | | | |
| Schedule A Itemized Deductions | | | | 5. Legal & Other Professional Fees |
| | | | |
| If your itemized deductions exceed your | | | | 6. Management Fees |
| standard deduction, then you are allowed to | | | | |
| take the greater of the two. Here are the | | | | 7. Mortgage Interest |
| standard deductions for 2007. | | | | |
| | | | 8. Other Interest |
| $5,350 - Single or Married filing Separately | | | | |
| | | | 9. Repairs |
| $10,700 - Married filing jointly or qualified | | | | |
| widow(er) | | | | 10. Supplies |
| | | | |
| $7,850 - Head of Household | | | | 11. Property Taxes |
| | | | |
| Here is a partial list of Schedule A | | | | 12. Utilities |
| deductions - for details visit the website | | | | |
| and in the search bar type in "schedule A" | | | | While we must pay some taxes, it's smart to |
| and look at the instruction form: | | | | use a professional tax preparer and be sure |
| | | | you are getting the maximum allowable |
| 1. Mileage (not claimed as business mileage | | | | deductions to reduce your tax bill. There are |
| on another form) | | | | other deductions available if you have them, |
| | | | but these are the most common. |
| 2. Medical expenses | | | | |