Every year there are changes in tax laws, deductions and credits. To get the biggest federal tax refund, you need to know what these are. Here is a list of some of the major changes in tax breaks for individual filers for 2006:
Energy credits for homeowners. If you installed certain energy-efficient products in your home during 2006, such as windows, exterior doors, insulation, and heating and cooling equipment, you could receive a tax credit up to $500.
Retirement plan tax savings increased. If you have a 401(k) or 403(b) plan, you can now create a qualified Roth contribution program.
Charitable Donations. Clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better to be deductible.
Telephone Excise Tax Refund. Individual taxpayers will be able to request a refund if they paid the federal excise tax on long-distance or bundled service.
New Split Refund Option. Taxpayers now can split their refunds among up to three accounts held by up to three U.S. financial institutions, such as banks, mutual funds, brokerage firms or credit unions.
Green vehicles tax credit. Owners of new hybrid vehicles purchased in 2006 are eligible for tax credits up to $3,400, depending on the model.
For more information, visit the http://www.irs.gov IRS website. Or refer to Publication 553, Highlights of 2006 Tax Changes, and the instruction book for Form 1040.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment