Personal Tax Preparation &
Income Tax Planning Tips from
Brookwood Tax Service -- Summer 2006 Archive Articles
(NOTE: The tax information in the
following articles was current as of the date on the page. Tax law
may have changed since these articles were posted.)
Tax Credit for Retirement Plan Contributions
The Credit May Help with Family Tax Planning
The retirement savings contributions credit is
scheduled to expire after 2006. If income limits prevent you from
claiming it, perhaps your child with a part-time job can.
See the
Full Article
for details.
Tax Credit for Home Energy Saving
Improvements
Tax Tip to Save Energy Costs and Taxes
Homeowners are eligible for a one-time tax credit
of up to $500 for qualifying energy-saving home improvements. Insulation,
energy-efficient windows and high-efficiency heating and air conditioning
units may qualify.
Full Article
Life-Changing Events May Provide Tax
Savings
Tax Tip - Review Your Tax Plan at Mid-Year
Many life events may provide tax-saving
opportunities during the year, including change in marital status, birth
of a child, changing jobs and sale or purchase of a home.
Full Article
Tax Tip for New Car
Shoppers
An Energy Hybrid Car may Come with a Tax Credit
Buyers of one of about a dozen qualified hybrid
vehicles during 2006 may qualify for a tax credit of between $1,550 and
$3,150. The rules are a bit complicated and the available credits
will decrease over time.
Full Article
Does Your Employer
Award Stock Options?
Tax Tips on Incentive and Non-Qualified Options
Both Incentive Stock Options (ISO) and
Non-Qualified Options (NQO) have tax implications in the year of exercise.
Analyze your income and tax situation when deciding the timing of an
options exercise.
Full Article
Tax Tips on Health Savings Accounts
An HSA Can Save Tax & Grow Funds for Health
Care
Use a Health Savings Account to set-aside funds for medical expenses that
can grow tax-deferred AND generate a current year tax deduction.
Full Article
If You Receive an E-Mail From the IRS,
Delete it - It's a Fake
Would-be scammers have been sending phony e-mails
that appear to be from the IRS. The IRS advises taxpayers to delete
any such e-mail, as the IRS never uses e-mail to communicate tax
information to a taxpayer.
Full Article
If You Reach Age 70 1/2 During 2006,
You Must Begin Taking Money From IRAs
If you will be age 70½ by December 31, 2006, you are required to begin
distributions from your IRA. The rules state that you must begin minimum
distributions no later than April 1 of the year following the year you
reach age 70½. If your 70th birthday is on July 1, 2006, you are not age
70½ until 2007.
