FAQ's

Status	Under 65	1 Over 65	2 Over 65
Single	$8,450	$9,700
Head of Household	$10,850	$12,100
Married Joint	$16,900	$17,900	$18,900
Married Filing Separately	$3,300	$3,300
Qualifying Widower	$13,600	$14,600
Dependents Must File If: Wages (or earned income) exceeds $5,150 Interest (Un-earned income) exceeds $850

2. What is the most I can earn and still receive an Earned Income Credit?

The maximum is listed below, but the closer you get to the limit, the lower the amount of your earned income credit.

	Single or Head of Household	Joint
2 or more kids	$36,348	$38,348
1 child	$32,000	$34,000
No child	$12,120	$14,120

3. What information should I bring to my tax appointment?

All clients should bring the following:

EMAIL address where we can send a copy of the tax return!
Bank Info (copy of check) for each accounts you want any refunds direct deposited into
W2's for wages
1099R's for pensions and IRA's
W2G's for Gambling/Lottery winnings
1099's for unemployment and social security
1099's for interest or dividend income
Amount of alimony paid or received
Social Security number and date of birth for each taxpayer and dependent
Statements for all IRA accounts
Details of all stock and securities sales including purchase data & cost
Details of any college expenses paid including school name and address
Statements of interest paid on college loans
Home sale information
Child care expenses including name and federal ID number of provider
Any early withdrawal penalties charged by banks
Landlords name and rent paid during the year
Record of any estimated taxes paid by you
Cost of: insulation, windows, storm windows & doors, and metal roofs installed in 2006
Info on Hybrid vehicle - date of purchase and precise model

Taxpayers with itemized deductions:

Medical expenses that exceed 7.5% of adjusted gross income
Real estate taxes
Auto excise taxes
Mortgage statements from all mortgages & equity loans
Charitable contributions - please total your contributions by check, cash or non-cash documentation for cash an/or non-cash
Investment expenses & Tax preparation fees
Work expenses such as union dues, equipment, use of your vehicle, ect

Business and Rental Activities:

All income and expenses from that activity - total each category. We do not need to see receipts unless you have a question on it!

New Clients should provide:

A copy of last year's tax return whenever possible
Photo ID (if possible) to E-File

All clients should have a list of questions:

Estate taxes, inheritances, probate
Investments, 401K's, college funding, retirement issues
Annuities, Life insurance, Medicaid planning
Any other concerns you may have!

Circuit Breaker:

If you are not over 65, not in subsidized housing, and have limited income:

Real Estate taxes, water bill, assessed value of home

Rent paid and landlord's name & address

4. How much of my day care expenses can I get a child care credit for?

$3,000 per child for up to two children.

5. Is Social Security income taxable?

Maybe! If your other income plus one-half of your social security income exceeds $25,000 or $32,000 if married filing joint, up to 85% of social security income is taxable.

6. What is the amount I can deduct for each dependent?

Each exemption is $3,300 unless limited for higher income taxpayers.

7. How much can I contribute to my IRA for 2006?

$4,000 per person, unless you are over the age of 50 which increases your contribution limit to $5,500.

8. How much can I contribute to an educational savings account?

$2,000 per child in a coverdell e.s.a. and more into an 529 plan.

9. How can I check on my tax refund?

Federal return - call (800) 829-4477

Massachusetts return - (800) 392-6089

Have a copy of your return in front of you when you call, to provide the needed info.

10. How can I get a copy of my return if I lose it?

If we prepared your return, we can provide it under most circumstances, at a cost of $5.00 per copy per year. We will e-mail it to an e-mail address that we have on file or mail it to the address printed on the return. The other option is to pick it up at our office. You may be asked to provide ID when you pick it up.

You may also request copies from the IRS on form 4506.

11. What can I deduct for day care expenses?

2 children	$6,000
1 child	$3,000

12. How much of a deduction can I claim for each dependent?

$3,300 each

13. What can I contribute to my IRA (Roth or Traditional)?

Under 50	Over 50
$4,000	$5,500

14. What can I contribute to my child's Education Saving Account?

$2,000 for each child

15. How much much medical expenses must I have before I can deduct them from my taxable income?

They must exceed 7.5% of total income before you can deduct them.

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