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Date last modified:
10/29/07
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Tax News You
Can Use
- Long-Distance Telephone Tax refunds
will be processed through 2006 federal tax returns. Refunds will
range from $30 to $60 based on the number of personal exemptions claimed
on the 2006 return. Alternately, taxpayers can claim the actual
amount paid by going through old telephone bills since 2003.
- Beginning in 2006, the IRS will permit taxpayers receiving refunds to
split their refund among one, two or three accounts,
including IRA accounts, when choosing direct deposit. Form 8888 will
be required when designating more than one account.
-
Health Savings Accounts (HSA)
help alleviate the burden of medical expenses and provide some tax
advantages. Only high deductible health insurance policies qualify.
- You can open a
Roth IRA for 2007 or contribute to
an existing one up until April 15, 2008. The maximum annual contribution is $4,000 per year;
after-tax dollars. Those over 50 can contribute an additional $1,000. Earnings on your Roth are federally tax-free if your
account has been open for five years and you are at least 59½ years
old. Contact Bill for more information on Roth IRAs.
- The Saver's Credit
offsets the cost of the first $2,000 contributed to IRAs, 401(k) plans and
certain other retirement plans. The credit is figured as a percentage of the
qualifying contribution. The federal tax credit applies to Individuals filing
as single with incomes up to $25,000; filing as head of household up to $37,500
and married couples up to $50,000. Other requirements are the taxpayer must be
18, not a full-time student and not claimed as a dependent on another person's
return.
-
Purchases of certain hybrid cars may qualify for a tax
credit on
federal returns. The credit is only available to the original
purchaser and for vehicles placed in service on or after January 1 of the tax
year.
Credit amounts vary according to make and model and, in some cases, are tied to
the number of vehicles sold. IRS frequently updates the list of
qualifying vehicles. To check on the latest information, go to
Internal Revenue Service and put the
term "hybrid cars" in the search box.
- Oregon Residents can take advantage of a tax credit program to encourage purchase of certain
new energy-efficient appliances and power systems.
You must have
a special state certificate to claim the credit on your tax return. For more
information, instructions on how to get the mandatory certificate and a list of eligible appliances, go to:
Oregon Department
of Energy - Conservation Division Residential Energy Tax Credits
.
- Washington State residents do not pay individual
income tax. Businesses may need to collect sales tax and fulfill other
reporting requirements. Visit the
Washington State Department of Revenue's website for more information.
Resources You Can Use
- To stay on top of Social Security news, you can sign up
for a free monthly email newsletter. To get it, go to www.ssa.gov/enews
- You can download forms, publications and information
from the IRS website. Go to www.irs.gov
- For the Oregon Department of Revenue, go to
http://www.oregon.gov/DOR/.
You should be able to access other states from the IRS website.
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