Simple Tax Question

CS8161

January 18, 2007 14:03

Is there a mininum amount of deductions that one must have before its worth filing the long federal form?
Thanks

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  kyplumber

  January 18, 2007 14:04

  yes, anything above standard deduction which is roughly seven thousand.

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  horatio

  January 18, 2007 14:06

  DO NOT SUPPORT A CORRUPT GOVT BY PAYING TAXES!!!!!!
  
  Write to us from prison!!

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  neacpa

  January 18, 2007 15:35

  If itemized deductions are over the standard deduction then it is worth utilizing. However, if there is enough standard deduction and personal exemptions to wipe out income, then it will not accomplish anything. 2006 Standard Deductions are - single (5,150), Head of Household (7,550), Married Filing Separate (5,150), Married Filing Joint (10,300) plus 1,000 for blindness or over age 65. Personal deductions are 3,300 this year.
  
  What MOST people use to itemize with is generally tremendous medical expense, significant state income tax, significant mortgage interest and significant contributions. As a general thought, if a person only has one of these, then it will not help a great bit if any. People usually need more than one of these to help.

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  B17-P51

  January 18, 2007 15:43

  Ditto on NEOCPA. We always try ours both ways, but the short form always wins, even if it only a few dollars. Just dont have enough bills.

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  CS8161

  January 18, 2007 17:09

  Thanks to all for the responses!

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  11b6r

  January 18, 2007 17:42

  IF your itemized deductions exceed the standard deduction, check the tax info for a one time deduction this year for a flat amount for past telephone tax. It's only a few bucks, so on it's own would not be worthwhile- but if you are itemizing, check on it.

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  neacpa

  January 18, 2007 19:00

  Whether you itemize or not has nothing to do with the telephone excise tax credit. It is a credit, not a deduction.
  
  Also, remember the energy efficiency tax credit implemented this year. It is a $500 lifetime maximum credit broken down into various amounts for different types of energy efficient improvements to your home. Probably the one that will be most utilized is the $300 for insulation, storm doors/windows, etc. It cannot be used for a rental house or vacation/secondary home.
  
  Also, the retirement savings contributions credit is still there. If you contribute to your 401K or IRA, then you can take from a 10% to 50% tax credit of your contributions, depending on income and if you have taken a distribution from a retirement account the past few years.

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  grdad45

  January 19, 2007 04:18

  There has never been a "Simple tax Question"![8D]

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