Don't forget, make your appointment early. If you wait until April, you may be out of luck. Seventeen people during the last three days of the tax season were sent to my competitors because I just did not have the time to help them. Nineteen were sent the year before. This year it will be harder to make an appointment with me. Remember there are others in this office 'now'.
I have saved the worst for first,
Audits, this year, this is what the IRS has told me they are going after this year:IRS will expand its scrutiny of tool reimbursement plans so beware if you are in the trades or construction industries.
IRS said it will crack down hard on those in the real estate trades, everyone from sales to home builders.
Also, beware that if you took a home exclusion during the last 5 years, and plan on selling your second home, even if you have lived in it for at least two years, the exclusion is limited which means you may pay tax on the sale of your home.
And, the IRS has determined it will do 13000 random audits just for GP
Tax Years 2007 and LaterAdoptionAdoption creditBeginning in 2007, the credit allowed for an adoption of a child with special needs is $11,390 and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $11,390. The credit begins to phase out if you have modified adjusted gross income of $170,820 or more and is completely phased out if you have modified adjusted gross income of $210,820 or more. Adoption assistance programBeginning in 2007, you may be able to exclude up to $11,390 from your gross income for qualifed adoption expenses paid or incurred by your employer under a qualified adoption assistance program in connection with your adoption of an eligible child. This income exclusion starts to phase out if your modified adjusted gross income is $170,820 or more and is completely phased out if your modified adjusted gross income is $210,820 or more. Restrictions on Charitable Contributions (This is a biggy)Cash contributions.All cash contributions made in tax years beginning after August 17, 2006, to any qualified charity must be supported by a dated bank record or a dated receipt. The tax year for most individual taxpayers begins on January 1. Clothing and household items.Beginning with contributions made after August 17, 2006, no deduction is allowed for most contributions of clothing and household items unless the donated property is in good used condition or better.
Standard Deduction Amount IncreasedThe standard deduction for taxpayers who do not itemize deductions on Schedule A of Form 1040 is, in most cases, higher for 2007 than it was for 2006. The amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. The basic standard deduction amounts for 2007 are:
The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer may not exceed the greater of $850 or the sum of $300 and the individual's earned income. For 2007, the additional standard deduction amount for a person who is age 65 or older or blind is $1,050. If you are single and not a surviving spouse, the additional standard deduction amount is $1,300. Standard Mileage RatesBeginning January 1, 2007, the allowable deductions for the standard mileage rate are as follows:
2007 Tax Rate SchedulesThe 2007 tax rate schedules are provided so that you can compute your estimated tax for 2007. |