Thanks to a last minute effort by Congress in December, President Bush extended the Tuition and Fees Deduction for one more year. However, while the opportunity has been viewed as a yearlong Christmas present for some of the 4.7 million families with students in college, for many – all that glitter won’t produce any gold!

As luck would have it, the Tax Relief and Health Care Act of 2006, which revived the Tuition and Fees Deduction, has three roadblocks obstructing taxpayers:

1. For those who are eligible to take the deduction, there is nothing on the 1040 indicating how or where to take it;

2. Those unaware of it, and most families are, will miss the opportunity entirely; and

3. Hundreds of thousands of taxpayers who previously took or will take the deduction would save substantially more by taking an Education Credit instead!

For a taxpayer to actually take the deduction, they must physically write in a ‘T’ on Line 35 of the 1040, and if they are also claiming a deduction for ‘Domestic production activities,’ they must also write in a ‘B’ and “attach a breakdown showing the amounts claimed for each deduction.

According to an IRS spokesman, Publication 600, which explains in detail how to take the Sales Tax Deduction, will be mailed to the 3.5 million households who took it last year. However, this document makes no mention of how to take the deduction for educator expenses (on Line 23 write in ‘E’), and noticeably absent is any reference to the subject in question.

As usual, misinformation is rampant as demonstrated by this quote from an AP story: “The IRS said the deduction for tuition and fees can be claimed on Form 1040, line 35, ‘Domestic production activities deduction,’ by entering ‘T’ on the dotted line to the left of that line.”

Regrettably, there are no dotted lines for Line 35 – they’re on Line 34 and Line 36! And with 4.7 million families affected, there is no way to guarantee that everyone who is entitled to a deduction will actually receive it. Only time will tell, and families will have three years to amend returns if this information reaches them in time…

Reecy Aresty has been a financial advisor since 1977, and is founder and president of College Assistance, Inc., located in Boca Raton, Florida. He is the author of “How To Pay For College Without Going Broke,” an invaluable, critically acclaimed, parent/student manual, (updated from its previous edition, “Getting Into College And Paying for It!”). Arguably the most revealing book ever written on college admissions and financial aid, it is also the only book of its kind available in Spanish. For the past 28 years, Reecy has helped thousands of families send their kids to the college of their choice for less than they ever dreamed possible. For more information on admissions & financial aid, and to checkout the best college book on the market today, please visit: Paylessforcollege.com

A tax deduction checklist is one of the most important items a small business, or home based business, can have. This will always allow you to review it, and refresh your memory as to what is tax deductible and what is not. There can definitely be some gray areas when taking business deductions, but if you are not sure, or if it will raise a red flag, then just don’t do it. It is not worth it. But I have compiled a tax deduction checklist I use, and it is one I put together with my tax accountant.

1. Automobiles: 2 ways to deduct this, either by miles, or by all of the receipts of your expenses. Personally, I recommend just using the mileage deduction. You will probably be able to deduct more money this way, and it is just plain easy. Write down the number of miles it takes you to go somewhere for business. Then add them up and multiply it by the dollar deduction for mileage. This number may change.
2. Office: Anything used in the operation of your office, whether at an office, or in the home office, is tax deductible. Just keep receipts.
3. Bank charges: Any amount of money you are charged through a bank, or through a credit card processing company, is deductible.
4. Business Gifts: Be careful with this one. If it is truly a gift, then deduct it. But this can cause a red flag with auditors if the amounts of the gifts become very large. It looks as if you are just trying to not pay taxes.
5. Health Insurance: Any amounts of premiums you pay for your self employment are deductible. This included medical, life, and dental.
6. Charitable contributions: Any donations made to charities can be deducted.
7. Professional Fees: If you have an accountant, which files your taxes, and charges you a fee, it is deductible. Same goes for lawyers and consultants.
8. Depreciation: Check with your accountant on this one. Some things must depreciate over a certain number of years. And, it all comes down to how you label it. If I bill someone for a “Website Design”, they are suppose depreciate it. But, if I call it “website updates”, they can write off the entire amount. Kind of tricky, so be careful.

The above gives you a pretty quick and easy tax deduction checklist. Feel free to use this, and this will give you a general guideline on what to deduct. I would also consult a tax person if you have any questions.

For more information on taxes, visit Small Business Information and Facts

Tax deductions are one of the great, if only, things that are good when concerning tax time. We all grudgingly send in those papers knowing that at least we should be getting potholes filled and new textbooks in the school systems.

But did you know that with just a little tax time preparation you can save a lot of money that you probably would have overlooked? Tax deductions are bountiful, but unless you are an accountant, it is not likely that you will have all the knowledge you need to save a lot on tax deductions.

The first thing you should know, and this goes especially for those running a business from home, is that you need to have incredibly detailed records of all spending. This sounds like lot of busy work and very difficult, however it all boils down to just writing down what you spent money on and keeping your receipts- preferably in order for your accountant.

Another very good reason to keep good records is that the IRS is much more likely to take a look at the records of those who have home businesses than those who do not. It would behoove you to keep this in mind and keep those records.

Most people are aware that the more items you can deduct from your taxes the less you have to pay in or the more tax credits you will receive. But many don’t know that if you itemize your taxes it will save you even more than just lumping all deductions together in a tax return soup and think that you are going the best route for your tax deductions.

The fact is that the itemized tax deductions are much more likely to yield a higher return than those who don’t itemize. Anyone should be able to itemize their taxes and if you are a small businesses owner it would be in your interest to do so as well. It may seem like a chore to go this route, but you will be saving money and you will be able to claim more on your tax deductions.

Paying in taxes is a certainty and necessary need to keep our country running smoothly. However, you shouldn’t pay more than you have to and many people end up doing just that. Learn more about how you can save money on your taxes and even create a larger tax return for yourself by going here.

www.ultimatereviewsite.com

Matt Ide live and writes in northern Michigan. If you would like to learn more about saving money on taxes and not have to pay in go to http://www.ultimatereviewsite.com

There are a lot of tax forms and it can be difficult to keep them all straight. One of them is the form 1040A for 2006 and it is important to know about the changes this form has for the current tax year. Most tax forms change from year to year at least a little bit so keeping up with the new information is critical in order to file your taxes correctly.

One of the new elements of the 1040A is that individuals who paid federal telephone excise tax on their long distance service may be able to receive a credit. Something else new is that the form 1040A has an increased AMT, or alternative minimum tax exception. The amount for 2006 is $42,500 or $62,550 for those married filing jointly or $31,275 for those married and filing separately. Those who were on jury duty may report their income on the form 1040A. Those who paid their jury duty to their employers may possibly be able to deduct it. Any penalty from withdrawing money early from savings may be deductible on the form 1040A. The Earned Income Credit may be taken for those who have a child that lived with them and earned $36,348 or less or $38,348 married filing jointly. Or, those who did not have a child living with them and earned $12,120 or less or $14,120 married filing jointly.

More people may be able to get the credit because the maximum AGI is higher for 2006. Take the credit if your AGI is less than the amount that is applicable to your income. Those who have an investment income of $2,800 or less may qualify for the credit. Those with more investments do not qualify. Some last minute changes were made by Congress and only the long form has all the information that allows you to get all the tax deductions and credits. These include deductions for higher education tuition and fees as well as deductions for educator expenses.

Knowing this information about the tax form 1040A will help you file correctly for tax year 2006 and take advantage of all of the deductions and credits available to you.

Caitlina Fuller is a freelance writer. Form 1040A for 2006 and it is important to know about the changes this form has for the current tax year. One of the new elements of the 1040A is that individuals who paid federal telephone excise tax on their long distance service may be able to receive a credit.

The 1040EZ tax form is specifically for individuals who meet certain criterion. These individuals may not even know who they are. That’s why the form 1040EZ tax basics are so important to understand and know. The following information on the tax form will help you understand better what you need to know.

The following 1040 EZ instructions are only applicable to the tax year 2006. These instructions do not apply to any other tax year; however the instructions for previous years may be found online.

Some of the basics for form 1040EZ is that the majority of taxpayers qualify for the telephone excise tax refund that is claimed right over the phone. The following information will help you determine whether or not you qualify for the 1040EZ. First of all, if your income is less than $100,000 and your interest income is less than $1500 you qualify for this tax form. You also qualify if your spouse and you are less than 65 years of age. Income that is specifically from wages, Alaska Permanent Fund dividends, unemployment compensation, and interest are also eligible for this tax form. Those with no adjustments to income, those that claim only standard deductions, those who aren’t claiming other tax credits, those who may claim the Earned Income Credit, as well as those who can claim the Telephone Excise Tax refund are eligible for the 1040EZ.

There are several reasons to use the 1040 EZ. One of them is that it is much quicker and easier to file, which means the IRS will process it quicker and you will get your refund faster. Lots of people qualify for the 1040EZ, so check and see if you do.

The easiest way to file the form 1040EZ quickly and easily is to get your W-2s, 1099s, 1099-G, and 1099-INT statements together. You might want to start out with two of the 1040EZ forms so that you can practice with one and then have a final copy for another. You will also want to have a copy of the instructions and read them very carefully. This form is easy to fill out, just make sure you read the instructions so you know you do it correctly. Finally, have a pen and calculator handy so that you can make your calculations.

The instructions will tell you where to write your name, address, and social security number as well as what information to include on what line. Your wages, interest, and other income will need to be filled out on the respective lines. Once you finish, double check your name, address, social security number, and the like to make sure all is correct. Then you will be able to receive your refund much faster.

Caitlina Fuller is a freelance writer. The 1040EZ tax form is specifically for individuals who meet certain criterion. These individuals may not even know who they are. That’s why the form 1040EZ tax basics are so important to understand and know. The following information on the tax form will help you understand better what you need to know.

The 1040EZ form has been around for quite a while and each year the form is available to help people file their taxes it does change somewhat from year to year. The form 1040EZ does have some new directions for 2006 and the following information will be very helpful for those filing their 1040 EZ.

This tax form is specifically for those people who don’t need to file the typical tax return, but do need to file their taxes. The 1040 EZ is a lot shorter and easier to understand. In fact, it is so easy that anyone can fill it out. It is important, however to read the instructions and understand what is required each year. For the year 2006 individuals who file the 1040EZ may request their refund by telephone. Individuals who are eligible to file this form may order the form by phone, on the Internet at IRS.gov, and at several other locations as well.

Individuals who are eligible to file the 1040EZ may file electronically, which is what the IRS encourages people who qualify to file this way to do. The Free File program is available to these individuals so they can file their taxes without having to pay a fee. The Free File program is new for the 2006 tax year and it is believed that there may be as many as 10 million taxpayers who qualify to file this form who are typically required to file their taxes. Actual amounts may be requested by attaching form 8913 or the standard amount may be requested by taxpayers.

These new elements of the 1040EZ for 2006 are important for taxpayers to know so they can file their taxes appropriately and do so correctly. Avoiding mistakes means a quicker refund and a quicker and easier experience when it comes to filing taxes. If you are wondering whether or not you qualify for the 1040EX then go ahead and check out the directions to see if you qualify. You can quickly read over the instructions and determine if the 1040EZ. If you do qualify then you can fill out the form, file it, and receive your refund if you are to receive one fast and easy.

Caitlina Fuller is a freelance writer. The 1040EZ form has been around for quite a while and each year the form is available to help people file their taxes it does change somewhat from year to year. The form 1040EZ does have some new directions for 2006 and the following information will be very helpful for those filing their 1040 EZ.

The Democrats promised to balance the budget by 2012. They said they will do this by finding “$900 billion in additional revenues.”

Translation-TAX INCREASES!!

They would let the recent tax cuts expire in 2010. This means among other things bringing back the marriage penalty tax and cutting the child tax credit in half.

Democrats want you to believe that they intend to slow the growth in spending.
They are using their usual deception with the term PAYGO. No matter how glib their wording, the reality is that PAYGO will become PAYMORE.

Little would be done to curb welfare and other entitlements which are soaring. The average family would see a tax increase of $2641 per year.

A family of four earning $50,000 would see taxes go up 132 percent. A single parent with two children earning $30,000 would see taxes raised 67 percent, according to Senate Minority Leader Mitch McConnell, if the president’s tax relief is not made permanent.

Some Democrats blame it on the war. Total defense spending takes 4% of GDP. Defense spending as a percent of GDP is a tick away from its lowest point in 50 years.

Democrats are simply being Democrats. They’re trying to get their hands on every penny they can to redistribute, mostly to non-producers.

To implement PAYGO, tax cuts must be offset by tax increases elsewhere or with cuts in entitlement spending, which would be helpful if those cuts applied to all entitlements.

Instead, Democrats stayed away from entitlements already in place, which have huge future costs.

Since the 2001-2003 tax cuts, revenues have soared and continue to do so. With revenues pouring in to the Treasury, no legitimate argument can be made for tax increases.

How about the economy? March 2007 produced another sizable jump in new jobs as did worker gains. When workers gain as they have for the last two years, the job market usually remains tight, signaling more good news ahead.

PAYGO may sound good, but it has the potential for much harm.

Hopefully Americans will tell congress to put a healthy economy and job creation ahead of partisan politics.

Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at http://conservative-politics-infofind.com

They often say you can find a silver lining with just about everything. In the case of filing your taxes, getting a refund is definitely the silver lining. That, of course, assumes you get one.

You have slaved through the tax preparation process. You spent hours digging up receipts, checking bank statements and tracking down credit card bills. You then spent more time reading torturous IRS instruction pamphlets. Finally, you finished your return and discovered something glorious. Yep, you are due a refund! You rush off, file your return and start waiting.

If the IRS owes you money, how long will it take to get the check? Well, it depends. If you filed electronically or opted to let the IRS wire the money to your bank account, it can take two to four weeks. If you opted to have them send you a check, the time can double.

The biggest issue in getting your tax refund is figuring out how far it is in working its way through the IRS bureaucracy. Well, the IRS has set up a helpful online tool to assist you. Yes, the IRS being helpful. Shocking, eh?

To find out the status of your tax return, you need to visit the website for the agency. On the home page, you will find a link titled “Where’s My Refund?” Click it and you will be taken to an interactive tool that ties into the IRS system. This magic little freebie will tell you how things are going with processing your refund.

To use the tool, you need a copy of your return. You will need to provide your social security number, filing status and the exact amount of the refund you are expecting. Just to be clear, your filing status is the designation you picked when filing out your return. You know, “single”, “head of household” and so on.

Once you fill out the form, the tool will access the database and kick out an answer. You will see something along the lines of 1) We received your return and are processing it, 2) the check is in the mail and was sent on this date, or 3) You gave us the wrong address. The answers are not as helpful as you might think, but give you a general idea of how things are proceeding.

That is it. The process is shockingly simple given the complexities of actually preparing a tax return.

Find tax relief at BusinessTaxRecovery.com.

At this late stage of the tax filing game, I would like to make an observation and offer some advice on extensions and installment agreements. My friends, I appreciate your reading of my articles and appreciate your listener ship of my radio program, “Better Business”. Let me return the favor and offer you some more free income tax advice.

If you are going to owe money, don’t put your return on extension thinking this will give you more time to pay. If you don’t have the money to pay, fill out an installment request, form 9465, and attach it to your 1040 by April 16 (April 17 for some of you lucky taxpayers). The Internal Revenue Service will accept this installment agreement without consideration providing the tax due is paid within a three year period. Your state and local governments will also accept this form for the most part. For example, if you owe $5,000 on your federal return, but can only send $1,000; fill out form 9465 to reflect this. You will then be able to get a term loan over the next three years to pay the remaining balance due. You will be asked to select a time frame, a monthly amount, and a time each month you would like to make the payment. Be realistic by choosing a payment you can afford, but pay it off as soon as possible.

The next issue I would like to discuss with you involves federal form 4868. This is the automatic extension request giving you until October 15, 2007 to file your 2006 income tax return. The old rules gave a taxpayer until August 15th to file the return, allowing for an additional extension until October 15th with more involved circumstances. If you are going to owe money and have it to pay but are waiting for more information to complete your return, complete form 4868 by showing the total expected income tax due less any withholding and estimated payments. The balance remaining is what should be sent with the extension request. If you are one of those taxpayers making estimated tax payments each quarter, combine your estimate with the mount you expect to owe. Using our example above suppose your total liability for 2006 is expected to be $20,000. You have made estimates totaling $15,000 during the year leaving you with a balance due of $5,000. If you project that you will need to make estimates of $4,000 each quarter for 2007, show your expected tax liability for 2006 to be $24,000 ($20,000 actual expected tax due plus the first quarter estimate for 2007). Subtract from this balance the $15,000 in estimated payments you have made during the 2006 tax year, and show a balance due of $9,000 on form 4868. Send this $9,000 in with your extension request. This will keep you from having to file a separate estimated coupon (form 1040ES) and will give you additional protection against penalty. For example, assume that your estimate of $20,000 in total tax for 2006 is low by $2,000. You will now have enough paid in to cover any penalty and interest charge. The remaining balance of $2,000 from your extension payment of $9,000 will be applied to your 2007 estimates by electing so on your 1040. You can then make up any short fall for 2007 by making more estimated payments or increasing withholding from your pay. I think this is very clever.

The final thing I would like to mention to you in this article deals with under estimated tax penalties. There are three essential ways to avoid paying this underestimated penalty. The first way is to pay in 100% of your previous year’s income tax (110% if your adjusted gross income for the previous year is $150,000 or more). The next way is to pay in at least 90% of the current year’s income tax liability. You will need to make an income change consideration in order to determine which method to use. For instance, if you had abnormally high income in the previous year (i.e., a one time realization of capital gains), it will not make sense to base your current year’s estimate on last year’s income tax liability. It would make more sense to project 90% of your current year’s expected liability. The final way to avoid penalty is to consider annualizing your income. Suppose you had a big capital gain in December and you owe money because of this. If you do not annualize your income, the Internal Revenue will assume that the gain was earned equally throughout the year. This could cause a penalty. To avoid this, fill out form 2210 and elect to annualize your income. Put your capital gain in the fourth quarter of 2006 where it belongs, and eliminate all or a portion of any penalty. For those of you using one of the tax software programs, this will be an easy calculation.

As always, if you need any help with anything mentioned in this or other articles, please do not hesitate to contact me. I wish to help everyone in the world with there stress over income taxes.

Ron Piner, CPA
Host of “Better Business”
Saturday Mornings at 10ET
ON WBIS AM 1190
http://www.wbis1190.com/
http://www.mwibonline.com/
taxguy9@hotmail.com

On November 7, 2006, voters in Vista, California passed Proposition L. This measure called for an increase in the sales tax rate of one-half of a percent. The rate in Vista had been 7.75% - the new measure raises the rate to 8.25%, the highest of any city in San Diego county. The new rate went into effect on April 1, 2007.

The city manager of Vista estimates that Proposition L will generate $6.5 million for the city annually. The funds will be used for various projects, such as:

Public Safety Projects

• Reopen two community police sub-stations

• Additional Sheriff’s deputies
• Construction of two new fire stations
• More fire personel

Community Priority Projects

• Construction of a new sports complex

• A new stage house for the Moonlight Amphitheatre
• A new civic center

General Service Projects

• Maintain streets

• Sidewalk repairs
• City medians and landscaping beautification
• Other general services, such as parks and recreation services

Transactions Requiring the New Sales Tax Rate

• Purchases made inside the boundries of the city of Vista

• Any delivery of goods to addresses within the boundries of the city of Vista
• Residents within the boundries of the city of Vista must pay the tax on vehicles purchased or leased, regardless of where it was purchased or leased
• Mobile homes, boats, and aircraft on properties in Vista

Other Facts about the Sales Tax Increase

• Voters approved it for 30 years

• A Sales Tax Oversight Committee will review the spending of the money, and will give budget advice to the city council
• All businesses located within the boundries of the city of Vista must increase their sales tax collection to the new rate on April 1, 2007
• Unincorporated areas of Vista are not included in the new increase - they will continue to use the old rate of 7.75%

About the Author: Jennifer A. Thieme is a Certified QuickBooks ProAdvisor who loves to write about accounting issues. She brings unique insight, clear instructions, and over ten years of experience to all of her business articles. Owner of Solid Rock Accounting Services, Jennifer’s clients enjoy these same benefits on a personal and regular basis. You can too - visit http://www.jenniferthieme.com and contact Jennifer today