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Saving On Taxes
By Keith Petz


Here is a checklist of some of the tax changes to consider, you`ll want to make a mental note or write them down for yourself. A lot of you are probably still waiting for your k-1`s. Don`t forget to always contibute to your retirement plans (IRA`s & Roth plans etc.) - very important!

FOR ALL OF US: You may be eligible for earned income credit, which increased in 2005, if you: Have more than one qualifying child and earn less than $35,263 ($37,263 if married and filing jointly); Have one qualifying child and earn less than $31,030 ($33,030 if married and filing jointly); or Don`t have a qualifying child and earn less than $11,750 ($13,750 if married and filing jointly).

IF YOU TAKE THE STANDARD DEDUCTION: In most cases, base amounts are higher than in 2004. Singles and married taxpayers filing seperately take $5,000; head of household, $7,300; married taxpayers filing jointly, $10,000. The exact amount depends on other factors, like whether you are 65 or older, or blind, or whether another taxpayer can claim you as an exemption.

IF YOU ITEMIZE: Check out irs.gov for details on these tax breaks: IRA`s. The amount you and your spouse, if filing jointly, may deduct as an IRA contribution moves up to $4,000 ($4,500 if you`re 50 or older), if you meet income requirements. Business mileage. The rate increased from 40.5 cents earlier in 2005 to 40.5 cents per mile for all miles driven from Sept. 1 to Dec. 31. Hybrid car owners. You can claim the maximum amount allowed for a clean-fuel or electric vehicle.

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