The Cadiz Record spoke to Kim Bivins of Solutions Tax Service and Bookkeeping to learn what taxpayers will need for a return, and what new policies should be remembered while paying taxes.
“Bring your W-2’s; a list of dependants, including name, social security numbers and dates of births; a list of any interest earned, I-9 INT forms; any dividends and stock sold or if you drew money out of a retirement plan,” she said. Bivins added that interest paid on student loans and proof of employment as a teacher if seeking a teaching deduction. Workers who are self-employed may deduct health insurance payments. Childcare expenses and tuition payments may also be deducted.
According to Bivins, medical expenses may also be itemized and claimed if over 7.5 percent of an individual’s gross income. Mortgage interest, real property taxes and personal property taxes- including cars, boats and motor homes may also be deducted with receipts from tax payments. She said that contributions to non-profit organizations might also be deducted, though receipts to prove the contributions should be submitted and retained.
Mileage for vehicles used in work may be deducted. The IRS has increased the amount of a deduction from 44.5 cents-per-mile to 48.5 cents-per-mile.
“Everyone is talking about the Economic Stimulus Package,” said Bivins. “I got a letter from the IRS saying returns should be filed as soon as possible. It said that to get the package in 2008, returns should be filed no late than October 15, for those seeking extensions or with no usual tax liability.”
For more tax tips, see the new Cadiz Record.