3 Important Tax Changes

3 Important Tax Changes for 2008

Three tax law changes that you should consider before filing your federal tax return for the 2008 tax season. Some tax breaks have been renewed, the standard deduction has been increased, contribution limits have risen for many retirement participants.

1. Tax Breaks Renewed

You can still take a tax break for the state and local taxes that you paid during the tax year on your federal return. If you are an educator, you can take a deduction of supplies you purchased on the front page of form 1040. And students can still take deductions for tuition and fees paid during 2008 on their tax return.

2. Your Standard Deduction is increased in most cases.

Increases in the standard deduction happened for many groups. For married couples and widows the new deduction is $10,900. For Singles and Couples filing separately, the deduction has been raised to $5,450. And finally heads of households can take a standard deduction of $8,000.

3. The amount you can earn and still contribute to your retirement account has increased.

If your modified income for 2008 is below $53,000 for singles and $63,000 for heads of household, then you can take a tax deduction for IRA contributions even if you have a 401k or 403b plan at work. And joint filing couples can earn up to $85,000 before you begin to be phased out.

TaxSimple – Online Tax Preparation Software

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TaxSimple – Online Tax Preparation Software

Prepare your federal tax return for free and only pay a small $9.99 fee if you print of eFile your return. Why not try it before you purchase? And all versions of the software are currently priced at the low $9.99 price including Simple, Deluxe, Premier, and Ultimate. Only pay more if you have a complex business return.

Simple Edition

With the Simple edition from TaxSimple, you can prepare not only your federal tax return but also your state tax return for free. Fees only apply when printing or eFiling your returns. Your return is guaranteed to be accurate and you will get the biggest refund possible for your circumstance.

Desktop Versions

If you want to complete your return on your home computer desktop there are options available also. Download any number of tax preparation packages including Individual, Business and eFile. The applications update as tax laws change and the federal, state, and city return integrate fully allowing for easy completion of your state and city returns.


Income Tax Credits You Might Qualify For

Income Tax Credits You Might Qualify For

A number of tax credits which reduce your tax bill dollar for dollar that you might not have known about or might not have qualified for before are now worth taking a look at.

Income Tax Sappy (Photo credit: Wikipedia)

Recovery Rebate Credit

If the rebate checks that were sent out last tax season didn’t find their way to you because you made too much on your 2007 1040 tax return, you have a second opportunity to receive the credit for the 2008 tax season. Therefore, if you income has decreased for any reason during 2008, make sure to double check your qualifications this year so you can now claim the $600 per taxpayer credit.

First-Time Homeowner Credit

This is an interest free loan to anyone that purchased a house for the first time between April 9th of 2008 and June 30th of 2009. Loans are equal to 10% of the value of the home or a maximum of $7,500. You’ll have to pay back the loan over the next 15 years but a no interest loan from the government cannot be beat.

TaxAct Online Standard

TaxAct Online 2013 Standard

Tax Act

If you are looking to prepare, print, and file your tax return electronically this tax season all for free, TaxAct Online 2013 is the software you will want to use for both a complex and a simple return. And TaxAct will guarantee that your refund is the maximum refund allowed.

Supports All 1040 Tax Forms

Weather you are looking to file the 1040EZ, the 1040A, or the full length 1040 tax return, TaxAct Online supports all three forms and allows you to electronically file (eFile) each form for maximum speed and efficiency. With TaxAct Online you can get your return in as few as 8 days.

Least Expensive State Returns

TaxAct Online provides one of the least expensive state return options you will find. For $13.95, TaxAct Online will prepare, print, and eFile your state return directly with your state. Your federal tax information will be imported for you making the state return simple and accurate. And when you eFile your state return, you will receive confirmation from the state as proof that you have filed your taxes.