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Tax Tips To Save You Money

Deductions To Consider Before Filing Taxes

Posted: 5:31 pm EST February 9, 2007Updated: 8:21 pm EST February 9, 2007

As a taxpayer, I bet you didn't know your money has been paying for the Spanish American war for decades. It’s part of a phone tax.

Now it's time to get some of the cash back.

This year you can cash in on a one time refund called the telephone excise tax.

You're entitled to it if you've paid taxes on long distance calls for the past three years.

The refund ranges from $30 to $60 based on how many dependents you claim.

Tax experts told us there are other ways to save money on your taxes.

Did you install energy efficient windows or doors in 2006?

If so you can take advantage of the energy saving tax credit.

According to H&R Block tax specialist, Anna Lilley, this tax credit also includes other energy saving devices.

Lilley said, “It's a credit that is based on the cost of new energy efficient improvements including insulation, exterior windows, doors, water heaters, heat pumps, and furnaces.”

You can get as much as a $500 credit depending on the improvement.

You also get a tax credit of up to $3,000 if you bought or leased a hybrid vehicle last year.

Here's one you don't want to forget. The retirement savings credit.

Depending on your income and how much you contribute to a retirement account, you may qualify for as much as a one thousand dollar tax credit.

You can contribute to a retirement plan right up to April 17.

Filing your federal tax return on line can also save you money.

If you make less than $52,000 a year and have an uncomplicated return, you can file on line for free.


Property Tax/Rent Rebate Program

Newly expanded property tax rent rebate program means about 420,000 more Pennsylvanians are now eligible to enroll and receive property tax or rent rebates.

The new law, Act 1 of 2006, increases the income limit from $15,000 to $35,000 for homeowners and raises the maximum rebate for homeowners form $500 to $650. Renters with incomes between $0 and $8,000 will now receive $650 rebate and those with incomes between $8,001 and $15,000 will receive a $500 rebate.

Claimants or spouses 65 years of age or older, widows or widowers 50 years of age or older and the permanently disabled 18 years of age or older may qualify for this program.

- For information on this program visit www.revenue.state.pa.us.


Restrictions on Charitable Contributions Donated After August 17, 2006

A dated bank record or dated receipt must support all cash contributions made to any qualified charity. No deduction is allowed for contributions of clothing and household items unless the donated property is in good used condition or better.

Rules for Clothing and Household Items

To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better. However, a taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.

For information on this visit www.irs.gov.


MORE INFO:
- Pennsylvania Institute of CPAs
- IRS
- H&R Block

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