DogEared Corners - Tax Facts & Tips Etc – 5

DogEared Corners - Tax Facts & Tips Etc –  5
DogEared Corners, those folded corners of book pages are to prompt yourself or someone else to read an item or a fact, or a tip or note on that page. Visit my DogEared Corners pages for Tax Facts & Tips Etc. where I will be posting interesting items that I come across in the land of tax preparation and that I would DogEar for future reference because I think they might be of interest to many taxpayers.

•For 2007 the phase out income limits for the Hope and Lifetime Learning Education Credits have been increased. The credit is phased out or gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return.). So for your 2007 tax returns if your MAGI is $57,000 or higher ($114,000 or higher if you file a joint return you are not eligible to claim either of these education credits. These limits are increases from the 2006 amounts of $45,000 and $55,000 ($90,000 and $110,000 if married filing a joint return).

•Personal graduated income tax rates for 2007 are 10% - 15% - 25% - 28% - 33%- 35% increasing according to federal income brackets.

•If you are not required to file a federal tax return based on your income and filing status but you have had federal tax withheld from your paychecks you can file a return to have your federal tax withheld refunded.

•The following tax provisions have been extended through 2007.
o The tax provision for the deduction for Educator Expenses from Adjusted Gross Income has been extended through 2007.
o The deduction for qualified tuition and fees deduction has been extended through 2007.
o The election to include non-taxable combat pay in earned income to calculate the earned income credit has been extended through 2007.
o The deduction for state and local general sales taxes has been extended through 2007.
o The District of Columbia First-Time Homebuyer Credit for homes purchased before January 1, 2008 has been extended.

I hope you're enjoying Tax Facts on the Taxing Subject of Taxes!

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