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