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View Full Version : New $60 Income tax credit most miss


Riggs
03-01-2007, 05:52 AM
My wife found this in an article in the Wall Street Journal tonight, so I thought I'd pass it on. It's for line 71 on the 1040 form, page 60 in the instructions. If you paid for long distance between 2003 and 2006, you get a $60 credit if you have 2 kids or more, $50 with 1 kid. That's about everybody right? Don't need any proof, just take it. Even if you don't owe anything. IRS link (http://www.irs.gov/newsroom/article/0,,id=164032,00.html)

I guess there was a court decision about federal excise taxes that were collected but didn't apply. IRS estimated 160 million people qualify, bunch are missing it so far.

I don't have "people," I do my own taxes, thought some of you might too. Hey, 60 bucks is 60 bucks, eh? :yeah:

Edit: Title should have been many, not most miss it. IRS thinks 30%

Mark B.
03-01-2007, 12:44 PM
Riggs,

I do have people do my taxes. I would think most pro's know all the little rules on credits that you or I would miss. Keeping up with the changes every year is almost impossible for the average guy. I know there was one I did not know about that if you were a full time stay at home parent and you had at least 1 pay stub (say you worked a something like a Tupperware party then gave it up) you would be eligible for a tax credit of about $125 if you had a child in a registered pre school program. That would pay to have your taxes done by a pro just about. The list goes on and on. I pay $200 for my returns to get done with e-file included. The guy has all my stuff in his computer and all he has to do is plug in the numbers and address any nuances that might have differed from other years tax laws. And if there is an issue he takes care of it for me. Just my 2 cents (before taxes).

Bollux
03-01-2007, 02:43 PM
the gf went nuts trying to figure her taxes out cause she is stubborn to pay someone to do it. The big problem this year is the fact she has to pay taxes in both ny and pa since she works in ny and lives in pa. told her about this credit and if you really have your bills from 2003 you could stand to gain back a lot of money.

Riggs
03-01-2007, 03:59 PM
Yea, I'm as stubborn as your gf Bollux, and cheap. I can't imagine too many people keep 4 years of phone bills for the actual amount, but it is easy with the standard credit, no proof needed.

You might be right Mark, being cheap and then missing stuff doesn't make sense, haha. However, I read an article in a major financial magazine years ago where they came up with a fictional family, sent the taxes out to 50 places. Not one of them got it all right, not even the seasoned accountants. Most final amounts were different too, and not by just a few dollars. They missed some major stuff. I guess you could say that means if they can't get it right, I sure as h can't, but I'd rather give it a go. That way I know what other changes are that might affect how we do other things. Ours are pretty simple too, may change someday.

If I do ever hire it out, I'll double check it. I'll bet some of the paid returns miss this phone one too. If anybody knows any other little ones like Mark mentioned, I'm all ears (no stub for me on that one). I wonder how many here do their own?

MIDAD
03-01-2007, 04:33 PM
We (actually my whole family) get our taxes done buy the same guy for the past 15 years and I personally would not do it any other way. He charges us $30 and we are in his office for about 10 minutes. He is an accountant for the city and knows his stuff pretty well (said he just paid 8k for the new tax software...:shock: ). We had our returns direct deposited in our account inside of 2 weeks. (not to mention he did tell us about the $60 credit....:wtg:)

CTdadof3
03-01-2007, 08:36 PM
I've used TaxCut the past few years, and it works for me. I think it ran around $30, with a free e-file for both state and federal. The program is (supposedly) updated with all the latest info and seems to ask all the right questions. I am more confident in the software than bringing all my paperwork to a local office for somebody with 2 weeks of training who is doing returns as a 2nd job. Certainly a CPA or family friend would be a different story. And more complicated returns (paying taxes in 2 states, stock sales for example) should probably be handled by a professional.
Just my 1 cent (after taxes)