Tax & Financial Consulting Services
"Tax Increase Prevention Act of 2007"
On December 26, 2007, President Bush finally signed the "Tax Increase Prevention Act of 2007," providing a one-year "patch" to the alternative minimum tax (AMT).
Without this legislation, an estimated 25 million taxpayers would have had to pay an average of $2,000 in additional taxes for 2007. For more info on the AMT, visit G&G Audio conference call library on the "AMT"...remember this is only a one year patch so don't get caught slipping when there are things you can do to minimize your risk.
The new law increases the 2007 AMT exemption amount to $66,250 for joint filers, to $33,125 for couples filing separately, and to $44,350 for single taxpayers and
heads of household. Most nonrefundable personal tax credits will be allowed to offset AMT liability.
As a result of the late passage of this law, taxpayers using five forms related to the AMT will have to wait to file tax returns until the IRS computers are reprogrammed for the changes. The five affected forms include:
* Form 8863: Education Credits
* Form 5695: Residential Energy Credits
* Form 1040A's Schedule 2: Child and Dependent Care Expenses for Form 1040A Filers
* Form 8396: Mortgage Interest Credit
* Form 8859: District of Columbia First-Time Homebuyer Credit
The IRS has set February 11, 2008, as the expected starting date for processing returns involving these forms. Processing of other returns is expected to begin in mid-January.
So, if you will be filing any of these returns, I would wait to file your tax return until mid February. In the mean time, start gathering all your (W-2s, 1099s, interest statements, etc) to make sure you have all documents necessary to accurately complete your return.
Also, we will be starting the weekly tax & financial conference calls this week for the new year. Please look out for an e-mail this week on the call, or visit G&G Associates website and click on the "calendar" link for details.
Tax & Financial Consultant, RFC
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"The hardest thing in the world to understand is income tax." Doing Your Taxes doesn't have to be difficult. You could do it yourself but that's like changing your own oil..what else could be wrong with the car? Let us do the job for you-accurately and efficiently to get you all the money you deserve. Visit our website for more information or call us today to set your appointment.