IRS offers tips to make tax time less taxing
NASHVILLE — The Internal Revenue Service announced that the tax filing season will begin on time and only a small number of filers are anticipated to have a filing delay due to changes in the Alternative Minimum Tax laws.
Nationwide, the impact of the AMT changes is anticipated to affect a maximum of 4 million returns out of about 138 million. By Feb. 11, the IRS anticipates being able to process all tax returns, including those with AMT-related items.
The IRS offers the following tips that might save time and money when you file your federal return:
• E-file online at no cost using the IRS Free File program. You must have income of $54,000 or less for 2007. More than 1.7 million Tennesseans e-filed last year, many for free. E-filing offers a faster refund, a virtually error-free tax return and confirmation of receipt by the IRS.
• Take a 2007 tax credit for: (1) buying a new hybrid or alternative fuel vehicle; (2) certain energy-saving improvements made to your home; (3) contributions to a qualified retirement plan (subject to income limits); (4) certain higher education costs; (5) working but earning less than $40,000 (Earned Income Tax Credit).
• Don’t settle for the standard deduction. Add up these 2007 expenses to see if they exceed your standard deduction, allowing you to itemize: mortgage interest, real estate taxes, charitable contributions, state income taxes or sales taxes, medical expenses (subject to limits) and certain other items.
• Remember you don’t have to itemize to claim deductions for higher education tuition and fees and educator expenses.
• Let trained volunteers prepare and e-file your tax return for free. Available to filers whose 2007 income was $40,000 or less or who file a fairly simple tax return. Call 211 in Tennessee to find a site close to you.
For more information on any of these topics, visit www.irs.gov or call the IRS toll-free at 1-800-829-1040.
Published in The Messenger 1.2.08