Telephone excise tax credit – This credit was available on your 2006 tax return. If you filed but did not claim this credit on your 2006 return, file Form 1040X, using a simplified procedure explained in its instructions to amend your 2006 return.
Earned income amount is more – The maximum amount of income you can earn and still get the credit has increased. Your adjusted gross income also must be less than the amount in the above list that applies to you:
More than one qualifying child, made less than $37,783 ($39,783 if filing jointly),
One qualifying child earned less than $33,241 ($35,241 if filing jointly),
No qualifying children and made less than $12,590 ($14,590 if married filing jointly).
Rental payments for property – You can deduct the rent you pay for property that you use for rental purposes. If you buy a leasehold for rental purposes, you can deduct an equal part of the cost each year over the term of the lease.
Refund on a late filed return – If you were due a refund but you did not file a return, you generally must file your return within 3 years from the date the return was due (including extensions) to get that refund.
Split refunds – If you choose direct deposit of your refund, you may be able to split the refund into two or three accounts.
Paid Preparer – Generally, anyone you pay to prepare must sign it and fill in the other blanks in the paid preparer’s area of your return. If you have questions about whether a preparer must sign your return, contact any IRS office.
Other Expenses
Other expenses you can deduct from your rental income include advertising, cleaning and maintenance, utilities, fire and liability insurance, taxes, interest, commissions for the collection of rent, ordinary and necessary travel and transportation, and other expenses, discussed next. Gambling, traveling, equipment rentals, insurance premiums paid in advance and mileage for business or medical reasons can be filed. Returns and improvements and all unemployment compensation also should be filed. Visit www.hola-america.com the complete explanation on these filings.
If you have any questions, call Tina Maria Gonzalez with Income Tax Services at (309)755-0829.
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