What The IRS Has in Store for Limits and Contributions in 2007

Here are the new limits and contributions on IRA contributions, social security wage base, tax brackets, etc. for 2007 as set by the Internal Revenue Service.

New Tax Rules for the Poor

According to the Census Bureau, the number of tax-filers that earn less than $15,000 in 1980 dropped from $33,400 to $15,300 ten years later. Statistics confirm that in the year 2000 there was $11,900 tax-filers category

When Are 1099-MISC Forms Due

The dawning of a new year is also the dawning of the beginning of the tax season. One of the first things you need to deal with are 1099 forms.

Preparing 1099-MISC Forms

The 1099 tax designation refers to what are known as information returns. The IRS collects them to track revenues paid to individuals. Here is how you fill out the form.

Please For Goodness Sakes-Understand What You Are Doing

The income tax preparation season should not be a time of stress and worry. We should not feel pressure to file early so that we can collect our big refund. Income tax time is really all about a compliance exercise that culminates an entire year, or several years, of sound tax planning. By the time tax filing is upon us, there really should be no surprises. Are you planning for 2007?

Taxes and Selling Your Home

When it comes to selling your home, you want to make a profit. Many homeowners don't fully understand the tax implications of selling a home. It is important to know when profit turns into taxable income.

Here's a Resolution for '07: No More Tax Problems

Erase tax worries in 2007. IRS is cracking down on individuals who owe money to taxes. Penalties can be severe and can include years of jail time. High income individuals with a large tax debt or who have evaded taxes should be especially worried. IRS offers leniency to those who come forward. Contact a tax professional to start the New Year off right.

This Year Early Filers are Not Guaranteed Early Tax Refund

Even though it's only a small percentage, those people who file for state and local sales tax deductions, higher education tuition and fees deductions, and the $250 educator expense deductions are most affected, said the IRS.

IRS Suggests Ways to Kick-start Your Tax Return

Review important numbers such as Social Security numbers of your children or dependent. According to the IRS, errors on Social Security numbers are among the most common errors found on tax return. Getting your numbers right the first time around will reduce your chances of hearing from the IRS and quicken your tax refund.

Consider Electronic Tax Filing, You'll Be Glad You Did!

If you're looking for an easier way to do your taxes this year, then consider electronic income tax filing. Electronically filed tax returns are processed in about half the time of a paper return, according to the IRS. And that means you get your tax refund quicker.

Setting Rules and Regulations at the IRS

Next to the CIA, there seems to be no more mysterious governmental agency than the IRS. The method used by the agency to set rules and regulations is actually open to the public.

Tax Developments in 2007

As we turn to 2007, it is almost time to start thinking about the unthinkable. Yep, taxes. So, what developments can we expect to see in 2007 on the tax front?

New Year Tax Cut for Alabama Poor

For most taxpayers the dependent exemption will increase from $300 to $1000 and the standard deduction for couples will increase two folds to $7,500. For those taxpayers with adjusted gross income (AGI) of $30,000 or more the standard deduction will remain at $4,000. Conversely, deductions would fluctuate between $4,000 and $7,500 for taxpayers whose income range between $20,000 and $30,000.

Bill That Provides Tax Relief Signed By The President

Another one-year benefit for 2007 will allow military personnel to use combat pay (which is tax free) in the calculation that determines earned income. This will allow some personnel to qualify for the Earned Income Tax Credit, and others to increase the credit they receive.

IRS Has New Rules for Charity Deductions

A good rule would be to deduct the fair market value (value of the item in your local thrift store) of the item. If, for instance, you bought a pair of shoes for $40 dollars, you would have to deduct less than $40 if you used them, irrespective of the fact that you may have wore them only once. A woman's dress may be valued at $4.00 to $19.00 while a man's pants at $3.50 to $10.00 according to the Salvation Army Valuation Guide. Deduction for items (such as underwear and socks) with low monetary value will be denied.