Hey guys - As you're doing your tax returns this year (if you haven't already done them), here's a couple of things you might want to check out.
First, for those of you that moved in 2006, you might qualify for a deduction. I did and was able do deduct almost $500! Go to http://www.irs.gov/publications/p521/index.html to see if it applies to you (it's kind of long to read through, but you have to be sure you meet all of the qualifications).
If you paid tuition in 2006, you may be able to get a credit (even better than a deduction) for it. Go to http://www.irs.gov/publications/p970/index.html and check it all out. I was able to take the Lifetime Learning Credit and save $250.
If you made a contribution to a retirement savings plan (like a 401K or IRA), you can take a credit for up to $1,000 or $2,000. Check out http://www.irs.gov/newsroom/article/0,,id=107686,00.html. Note, you cannot take the credit if you were a student for any part of 5 months during the year.
Make sure you take the credit for federal excise tax paid ($30 for single and $40 for married filing jointly). Everyone gets this one.
There are other deductions/credits that you might qualify for, but I think these are the most common for the situations most of us are in. It can get pretty complicated, so if you do it yourself, make sure you are really thorough and fill out the forms correctly. It would probably be worth it to hire someone. Let me know if you have any questions!!
Miss you all!! xoxo
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3 comments:
Man, I wish I had your wealth of knowledge when it comes to finances! Thanks for this, Kath.
I totally agree becky! Seth and I already did ours and let me tell you, having a baby is really nice when it comes to tax returns!
look at you lady! good to know that someone has lots of knowledge!! Luckily for us Justin's brother-in-law is an accountant and he loves to do our taxes for free each year! If we ever have to do it on our own (yuck!) I will definitely take this advice!!
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