| I Am My Daddy's Tax Deduction | | | | income. The standard deduction for married individuals |
| I know my daddy loves me but he seems much | | | | filing a joint return is $10,300 which is already factored |
| happier with me during income tax time. A whole year | | | | into the income tax withholding tables used by your |
| of taking care of me yields some sort of tax windfall | | | | employers. This amount was subtracted from the |
| as long as my daddy's adjusted gross income is not | | | | mortgage interest expense but could have been |
| too high and he is not in the alternative minimum tax. | | | | deducted from the total to arrive at the same result. |
| The one thing I have learned by being the daughter of | | | | The personal exemption amount used in this calculation |
| a public accountant practicing tax is that you get your | | | | was $3,300 with exemptions rounded to the nearest |
| tax benefits as soon as you are able. Money received | | | | ones place. Assuming that this family is in the 25% |
| today is much better than money received tomorrow. | | | | bracket for federal purposes, the extra 10 exemptions |
| I do love my daughter and I am very proud to hear her | | | | will save $8,250 annually. This would breakdown to |
| say these words. It is absolutely true that is always | | | | $688 more each month. Imagine the difference this |
| better to get money today as opposed to waiting for | | | | would have in your monthly budget. If this money were |
| tomorrow. If we are in receipt of funds today, we can | | | | invested each month or used to pay down some of |
| make investments, put more money in our 401K's, pay | | | | the outstanding mortgage balance, the economic |
| extra on our mortgages, and take care of our current | | | | benefit will go well beyond this tax savings. The power |
| life styles without running up debt and finance charges. | | | | of compounding interest will turn this monthly benefit |
| What is really being said here is take advantage of | | | | into a much bigger economic gain. |
| your income tax benefits today. Do not wait until year | | | | Please my friends, my daughter and I urge you to |
| end; do not run up credit card debt to make ends | | | | calculate your income tax benefits for 2007 and |
| meet just to get a big tax refund. Have use of your | | | | beyond. Please take advantage of your benefits today |
| money this very day and begin planning for your future. | | | | to secure a more advanced economic well being |
| Here's how you can take advantage of your income | | | | tomorrow. Remember, if both spouses work, the |
| tax benefits today: | | | | subtraction will have to be $20,600 as both spouses |
| Husband and wife with two kids 4 exemptions | | | | will have this standard deduction built in to their |
| Mortgage interest ($24,000-10,300 standard deduction) | | | | respective withholding tables. If you are in the |
| 4 exemptions Real estate taxes ($4,000) 1 exemption | | | | alternative minimum tax, please do not take into |
| State income taxes ($7,000) 2 exemptions | | | | consideration your real estate taxes, personal property |
| Contributions ($10,000) 3 exemptions | | | | taxes, and income taxes. |
| In this scenario, husband works and wife has no | | | | |