SASFAA 2006 Update on Tax Form changes

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SASFAA 2006Update on Tax / Form changes

• Mike Szydlowski, Director of Financial Aid
  Woodberry Forest School
• Tax Preparation Planning
• Emailmike_szydlowski_at_woodberry.org
• [phone]

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SASFAA 2006Update on Tax / Form changes

• Katrina Relief Act 2005 (grey page)
• Most changes affect residents only
• Changes affecting anyone may deduct larger
  charitable contributions, volunteers deduct
  higher mileage rates, additional exemption
  allowed

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SASFAA 2006Update on Tax / Form changes

• Whats new for 2005 (grey page)
• Qualifying child/qualifying relative redefined
• Two tier business mileage rate, expect larger
  deductions for business use of car.
• First year expensing increases to 105,000.
• Qualified retirement deferrals increased
• Earned Income Credit increases to 4,400

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SASFAA 2006Beyond Adjusted Gross Income

• Case 1 NOL and Capital losses (pink)
• Case 2 Qualified Retirement Plan Contributions
  (green)
• Section 179 Expense / Depreciation (buff)
• Exception to 11K annual exclusion (gold)

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SASFAA 2006Update on Tax / Form changes

• New Forms we may need to review
• Form 4506-T page 2 address change (blue)
• W-2 Box 12, code Z
• Form 1098-C donation of car
• Form 4868 not new but automatic 6 month extension
• Questions?