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Circulating Email regarding the Telephone Tax
Credit
There is a telephone tax credit available this year. The credit is
between $30 and $60 and is a result of excise taxes charged on telephone bills between
2/28/03 and 7/31/06. Rather than requiring taxpayers to dig out phone bills to see
how much they paid, the IRS devised a table that can be used depending on your filing
status and dependency exemptions. Most individual taxpayers will receive this credit
(as long as you had landline phone service during this time) and most professional
tax software programs will have this credit built right in so our office hasn't gone
to great efforts to spread the word.
Business taxpayers and exempt organizations
can figure their refund by comparing their April 2006 telephone bill and their September
2006 telephone bill to arrive at a percentage to be used to figure the tax. The
refund is capped at 2% of total telephone expenses for organizations with 250 or
fewer employees.
Nonfilers (such as folks on social security and disability)
can file a form 1040EZ-T with a form 8913 to receive their credit.
Pension
Protecion Act of 2006
Allows direct deposit of your tax refund into your IRA.
Allows
a charitable donation of your IRA directly to a 501(c)(3) charity without claiming
the withdrawal as income and without having to itemize to get the charitable deduction.
Allows
nonspouse rollovers of inherited IRAs and certain tax deferred annuitys.
Requires
that all cash donations be documented by check or statement from the organization
(not sure what this has to do with pension protection, but it's in there . . . so
will no longer be allowed to claim the $20 you put in the collection plate at church
without writing a check or using a church envelope.)
Provides for stricter rules
on donating items to charity.
For more details, follow this link to smartmoney.com.
Arizona
State income tax credits
Put your tax dollars directly into your local
school
or tuition organization by making
a public school or tuition organization donation.
Limits
for 2006 -
Public schools - $400 (married filing joint)
Private tuition organizations
- $1,000 (married filing joint)
Follow this link for more information
http://www.revenue.state.az.us/brochure/707.pdf
There
is also a charitable tax credit of up to $400, but you must know how much you claimed
as a charitable deduction in 1996 (or the first year you itemized after 1996) and
this year's charitable contributions must be $400 than that figure.
Standard
Mileage Rate
44.5 cents per mile
48.5 cents per mile for 2007
Social
Security Wage limits for 2007
$12,960 for people under full retirement age
$34,440
in the year you reach full retirement age
No limit on earnings beginning the month
you reach full retirement age
Energy Policy Act of 2005
The
basics of this act is that homeowners can
receive a 10% tax credit (up to $500/$200
for windows)
for insulations systems, exterior windows or
metal roofs. There
is an additional credit of
$50 for an advanced main circulating fan, $150 for
a natural gas water heater and $300 for
an electric heat pump or A/C unit.
All
equipment must be certified by the manufacturer
except Energy Star windows
and skylights.
There is a number of intricacies to this new
bill so you might
want to check with your
accountant or check the IRS website before buying.
Vehicles
Eligible for Hybrid Tax Credit
If you are interested in purchasing
a hybrid
vehicle, you may be eligible for a
tax credit . . .
Tax credit may only be
claimed by the original owner.
Click
this link to the IRS webpage for more information.
Contracting
Tax Factors
The following rates are factored tax rates
for Contracting
in the various locales.
The rates are factored by taking 65% of the existing
rate
thus allowing for the 35% standard deduction.
Tucson - 5.265%
Pima
County - 3.965%
Oro Valley - 6.565%
Marana - 6.565%
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