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Every year, the IRS changes some of the specifics
for tax deduction and they usually don't inform
the national public about the detailed changes so
people are usually left to just buy new software
like Tax Cut or Turbo Tax. There are many changes
like adjustments for inflation that increase the
standard deduction and widen the tax brackets
that are easy to spot, but there are other subtle
changes that are less obvious. It might make you
angry to find out that some of the changes aren't
even on the 2006 tax forms because they were made
so late.In order to insure that you get the
maximum deduction that you deserve, you need to
follow some specific tax filing procedures to
obtain them. For state sales tax, college tuition
and educators' expenses, Congress changed the
deductions for these specific issues last
December, but they aren't on the forms.
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You are now able to get deductions on these
expenses based on the new changes. Also, if you
are the kind of person that likes to get their
taxes done early, you will have to wait until
after February 3rd because the IRS will not be
able to process returns until after this date.
Electronic submissions of returns will be
disregarded by the IRS and paper returns will be
set aside until the 3rd.You will want to save
your free efile until after that date.Other
changes that might save you money include phone
tax refunds, hybrid car tax credits, residential
energy credits, bigger adoption credits, and a
few other things that are geared more towards
companies and upper class income earners. The
government has stopped collecting the excise tax
on long distance phone calls because phone plans
do not charge their plans based on distance.
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Also, if you buy a hybrid car during 2006, the
government will give you a 3,400 dollar tax
credit for your contribution to society.If you
decided to use alternative fuels like solar
energy to heat your home, you can deduct 30 of
that along with 10 for the cost of skylights,
outside doors, and windows. If you decide to
adopt a child this year, you and your family can
deduct up to 10,960 dollars.Make sure to catch
these new changes on your tax returns because
these are not small deductions that don't matter
much. When you are working on your tax
preparation this year, don't forget to research
how to get back as much as possible on your tax
returns.
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