Sunday, August 19, 2007

Speaking of taxes...

Some "new" tax breaks:

Beginning in 2008, the tax rate on long-term cap gains drops from 5% to 0% for folks in the 10% or 15% tax brackets. So, if you fall in that category, postpone taking cap gains until 2008.

The expired college tuition deduction has been given new life. The deduction is back, and is set higher at $4000 for those whose AGI is $130K or less on a joint return, or $65K or less on a single return. If your AGI is between $130K and $160K, the deduction is a scant $2000.

SPECIAL NOTE: If you did not take the deduction on your 2006 return because it was not listed (it had expired), you may file for it retroiactively bt filing an amended return, Form 1040X, for 2006.

No comments: