Here are some more updates regarding the new tax law:

  • There is an adjusted gross income limit for being able to use the new AMT credit (see the December 12 New Tax Law below – the text was updated)
  • If you want to use your actual bills to get more than the standard long distance credit, your bills would have to be over $50 per month for the 41 month period ending in August 1, 2006. You would need to use your records and complete form 8913 (the write in the form number on the credit box on the second page of your 1040).
  • You can get the standard long distance credit even if you would otherwise not file taxes by using form 1040EZ-T.
  • For children under age 18, they will need to consider making estimated payments this year, now that they pay taxes at their parents’ rate.
  • For cash charitable contributions, you will need a receipt to be able to take the deduction for 2007 on.
  • You can use the Required Minimum Distributions to make gifts from an IRA to a charity.
  • The IRS does not send emails so any that you get purporting to be from the IRS are phishing and should be reported.

In Massachusetts, non-filers can still get the “circuit breaker” credit for home ownership.

2006 Tax Forms: Certain tax write-offs set to expire were restored AFTER the 1040 and related forms were sent to print. Therefore, be very careful in completing your tax returns so that you do not miss items such as the state sales tax as described below. Also, do not forget the IRS credit for the long distance tax. See Links for access to IRS updates.