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