A Few More Money Saving Tax Tips for 2008
A Few More Tax Tips for 2008
Besides the Top 5 new tax laws above, there are many extensions of provisions and increases of benefits for 2008. Here is a brief list:
• The maximum earned income credit has increased. Additionally, the amount of income you can earn and still claim the credit has increased.
• The mortgage insurance premiums you paid on a residence may be deductible if the mortgage insurance contract was new in 2007 or 2008.
• The optional itemized deduction for state and local sales tax is still in effect.
• Teachers may still deduct up to $250.00 of qualified teaching supplies.
• Contributions of computers, software, and books to schools and libraries may qualify for a larger charitable deduction
• If your home was sold in foreclosure and the bank sent you a form showing your forgiven debt, you may be able to exclude all or part of this from income.
• Nonrefundable personal tax credits may be used to offset Alternative Minimum Tax.
• The business standard auto mileage rate for 2008 was increased mid-year to 58.5 cents per mile for mileage after July 1, 2008 (prior to July 1, the mileage rate is 50.5 cents).