Tax Law Blog | IRS Tax Attorneys

Make sure to get your maximum refund. Why should the IRS get to keep a penny of your money?

For 2007, you got to take off as much as $3,400 from your income for each qualified exemption you have, up from $3,300 in 2006. (The level rises to $3,500 in 2008.) Despite myths to the contrary, these include children who are full-time students under age 24, regardless of how much income they may have. As your income increases, your exemption deduction may decrease. For 2007, on a joint return, your exemption deduction were phased out between adjusted gross income of $234,600 and $357,100.

For singles, the numbers are between $156,400 and $278,900. With the exemption rising in 2008, the phaseouts increase as well.

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Have you been following all the changes the U.S. tax code has seen this decade? How about the tax bill passed late last year that expanded breaks for families facing the alternative minimum tax? Got a kid in college? Have you used the “Tuition and Fees” deduction that lets you deduct as much as $4,000 in tuition and fees off your 2007 taxes? And did you know that you may not able to use the deduction on your 2008 return? (The provision expired at the end of 2007, and Congress hasn’t renewed it yet.)

If not, get educated! If you’re “tax simple,” the IRS can actually do the return for you, or you can have your return done online — sometimes even for free. Alternatively, if you’re tax-savvy, do your own return after learning all the new rules here at the Tax Law Blog.

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