1. If
you are collecting unemployment benefits, your benefits are taxable.
To ease the tax burden when filing your return, you can file Form W-4V
and specify the amount that you want withheld from your benefit.
2.
If you turn age 70 on July 1, 2007, or later, you are not required to
begin your minimum required distributions from your IRA until April 1, 2009.
You are not considered to be age 70 and a half until January 1, 2008.
Minimum required distributions from your IRA must begin no later than
April 1st of the year following the year you reach age 70 and a half.
3.
Each cash contribution that you make must now be substantiated with a
written receipt or other documentation, regardless of the amount.
Unsubstantiated cash contributions are not deductible.
Non-cash contributions of household items must be in good or better
condition to qualify for a deduction. A
single household item valued at $500 or more, qualifies as a deductible
contribution regardless of its condition, provided you obtain a qualified
appraisal of the item.
4.
Beginning January 1, 2007 the standard mileage rate for the use of a car
(including vans, pickups, or panel trucks) are:
- 48.5 cents
per mile for all business miles driven
- 20 cents per
mile for all medical or moving purposes
- 14 cents per
mile for all miles driven for charitable purposes
5.
If you move, make sure to notify the IRS of your new address by filing
Form 8822.
6.
If you are a self-employed taxpayer, you may deduct 100% of your health
insurance premiums as an adjustment to income.
For shareholders in an S corporation or a partner in a partnership,
health insurance premiums paid on your behalf are included in your income and
allowed as a deduction as an adjustment to income.
7.
Expense related to the business use of your personal telephone, cellular
phone, and internet connection may be deducted as business expense.
8. If
you hired a housekeeper or a dependent care provider who provided services in
your home, you may be a household employer.
A household employer may be required to withhold social security,
Medicare, and federal income taxes from their wages.
In addition, you may be required to pay federal unemployment tax.
9.
If you are planning to set up a retirement plan for yourself and your
employees, a Simple plan must be established by October 1, 2007.
A SEP must be established by the due date of your return, plus
extensions. You can make employer
contributions up to the due date of your return, including extensions.
10.
Generally you can deduct only 50% of your business-related meal expenses
while traveling away from your tax home for business purposes.
Also, you can usually deduct only 50% of certain reimbursements you make
to your employees for meal expenses they incur while traveling away from home on
business.
“Tax Tips” are the opinions of Executive Accounting Solutions, which is not a substitute for individual accounting, tax, and professional services since individual situations vary.