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