[OPLINLIST] ICYPA: A good link for consumer and small business tax information

[Frank Atkinson]

Dear Editor,

 

The Ohio Society of CPAs is offering the public a series of personal money
management articles on the consumer section of its Web site at
www.ohioscpa.com/consumers/. Articles for February and March focus primarily
on tax tips for the 2006 filing season in an effort to make consumers aware
of new tax laws as well as deductions and credits that can add up to
significant tax saving opportunities:

 


News Release


For More Information:


Amy Johnson, Senior Manager, Public Relations 


E-mail:  ajohnson at ohio-cpa.com


800.686.2727 or 614.764.2727, etc. 341

 

 

Ohio Society of CPAs Offers Tips to Maximize Tax Deductions on 2006 Returns

 

(COLUMBUS, March 13, 2007) - With this year's federal tax filing deadline of
April 17 just around the corner, the Ohio Society of CPAs offers consumers a
number of resources to help with preparation of 2006 tax returns. 

 

Don't overlook deductions which can amount to tax-savings opportunities.
While many taxpayers are familiar with common deductions, such as mortgage
interest and medical expenses, they can fail to claim others. 

 

Tax deductible expenses for 2006 

 

Charitable contributions - Charitable cash contributions as well as used
clothing, furniture, and household goods can be deducted as long as the item
is in good or better condition. Deductible amounts are based on the item's
current fair market value. 

 

Student loan interest - Interest paid on student loans is deductible as an
adjustment to gross income - up to $2,500 per year for as many years as it
takes to repay the loan. This deduction is subject to a phase-out depending
on your adjusted gross income.

 

IRA contributions - Contributions to a traditional IRA might be deductible,
depending on your age, total income, and whether you are covered by a
retirement plan through your employer.

 

Early withdrawal penalty - If you incurred a penalty as the result of an
early withdrawal from a certificate of deposit or other type of time deposit
savings account, the amount of the penalty is deductible as an adjustment to
gross income.

 

Health insurance for self-employed workers - Premiums you pay to cover
yourself and your family are 100 percent deductible as an adjustment to
gross income. 

 

Social Security taxes for the self-employed - In computing your adjusted
gross income, you can deduct up to one half of self-employment taxes paid
during 2006. 

 

Home equity loan interest - The IRS permits you to deduct interest payments
on up to $100,000 of home equity loan debt.  

 

Miscellaneous itemized deductions 

There are a number of deductible expenses that fall into the category of
miscellaneous itemized deductions as well. 

 

Unreimbursed employee business expenses - These include expenses such as
dues paid to a union or professional society, business related travel,
books, job-related courses to improve skills, and work clothes and uniforms.

 

Job search expenses - The money you spend looking for a job is deductible as
long as you're searching for employment in your current field. You may
deduct the cost of travel (only if the trip relates primarily to seeking a
new job), resume preparation, postage, and telephone calls - even if you
don't get the job. 

 

Investment expenses - This category of miscellaneous itemized deductions
includes investment fees, safe deposit box rental, subscriptions to
investment publications and other expenses incurred in managing your
investments. 

 

Tax preparation fees - You can claim a deduction for fees you pay to a CPA
or other tax preparer, as well as expenses paid for tax preparation
software, tax publications, and electronic filing. 

 

If you have questions about eligibility on any deductions or on tax laws for
your particular situation, consult a CPA.

 

For more tax and money management tips visit www.ohioscpa.com/consumers/.
<http://www.ohioscpa.com/consumers/>  To find a CPA in your area call
888-959-1212

 

The Ohio Society of CPAs, established in 1908, represents more than 24,000
CPAs in business, education, government and public accounting.  The Ohio
Society's members not only meet statutory and regulatory requirements as
CPAs, but also embrace the highest standards of professional and ethical
performance.  This is achieved through ongoing professional education,
comprehensive quality review and compliance with a strict Code of
Professional Conduct.

 

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