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 There are numerous deductions and credits available if you take the time to look for them. Taxes can be confusing, but the savings justify the time and effort of finding all available deductions and credits.
Articles provided by Drake Software and It's staff as published in Taxing Subjects
In the rush to get tax returns prepared and filed by April 15th, many overpay their taxes. Following are a few tax reduction tips that could help you save a bundle
AMT Exemption Amounts
For tax year 2007 the AMT exemption are as follows: Filing single the amount is $33,750.00, married filing jointly $45,000.00, Married filing seperately $22,500.00, Head of household $33,750.00, Qualifying widow(er) $45,000.00
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Sales Tax Deduction
If you itemize deductions, you have a choice of deducting your state and local income taxes OR your state and local sales tax. If you live in a state that does not collect income tax, the optional sales tax deduction should be claimed for significant tax savings. See IRS Publication 600 for more information.
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Auto Mileage Rate
Use
Business .48 1/2
Medical .20
Moving .20
Charitable .14
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Capital Gains Rate for 2007
Rates: 10-15% tax bracket is 5%, above 15 % tax bracket the rate is 15%
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Tax Free Gifting for 2007
In most situations, tax free gifts are limited to $12000.00 per person.
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