Herb Weisbaum's Tax Tips
Tax laws change every year, and there were some important changes in 2005 you should know about. The links below will take you to specific information on the IRS Web site.
Highlights of 2005 Tax Law Changes
What is a Qualifying Child?
Think about all your spend your kids -- food, clothing, education, doctor visits, medicine, toys, and the list goes on and on. The tax code is designed to help parents and other caregivers who pay for all this. They can claim head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit and the earned income tax credit.
Because many families today are no longer "traditional" families, it's getting harder to figure out who can claim these various tax breaks. So, the IRS now has one way to define a child. Read about the new rules at this link
Standard Mileage Rate
The standard mileage rate for the cost of operating your car, van, pickup, or panel truck is increased to 40.5 cents a mile for business miles driven during the period January 1, 2005 to August 31, 2005, and to 48.5 cents a miles for business miles driven during the period September 1, 2005, through December 31, 2005.
Do You Qualify for the Earned Income Tax Credit?
Learn about the special features and new rules regarding the Earned Income Tax Credit.
Taxpayers Can Claim General Sales Taxes Instead of Income Taxes as Itemized Deduction
Taxpayers who itemize their deductions can claim either state and local income taxes or state and local general sales taxes.
The IRS issues hints for taxpayers on how to distinguish between reputable and possibly fraudulent tax return preparers.
Electronic Payment Options for 2006
Taxpayers have several electronic filing and payment options to choose from.
The IRS offers free assistance to taxpayers through a variety of means.