| Mark Steber, VP of Tax Resources, Jackson Hewitt Tax Service gives advice on new tax law changes. |
MTN Top Tax Tips for 2008
How to Make the Most of Your Tax Return Filing Experience
With new tax laws this year that taxpayers may not be aware of, many filers may end up leaving money on the table. Over $246 billion was refunded to individuals alone last year, according to the IRS. To make sure you’re getting the most from your returns, here are a few important tax tips.
What are some of the new tax law changes people need to be aware of this filing season?
- If you bought a house or refinanced your mortgage last year, you may be able to deduct your mortgage insurance premiums or PMI.
- If you provided support last year for a child in your household who is unrelated to you, you may be able to claim a deduction for that child due to new rules for dependents.
- There are also new laws that can help if you have been affected by a home foreclosure. If your home has been foreclosed, you may qualify for a tax break on the amount of debt forgiven.
I’ve heard about the economic stimulus package. How much will I receive and when will I get my rebate check?
- The rules vary based on filing status and income, but most single taxpayers will receive $600 and joint filers will receive $1,200, plus $300 for each qualifying child under age 17. The minimum payment is $300 for taxpayers with at least $3,000 of earned income or qualifying income such as Social Security benefits or veterans’ disability compensation.
- The rebates will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.
- You must file a 2007 tax return to receive a rebate.
- The plan is to begin distributing rebate checks in May.
What are the most common overlooked credits and deductions I should be aware of?
- Some typically overlooked deductions and credits include the Residential Energy Tax Credit, Tuition and Fees Deduction, Earned Income Tax Credit, Educator Expense Deduction, the Saver’s Credit, and the Child and Dependent Care Credit.
