LAW OFFICES OF JERRI ANN CIRINO

Now conveniently located just north of the LIE.

35 Pinelawn Road Suite 218E

Melville, NY 11747

Tel 631-271-8722

Fax 631-271-8699

E-Mail: jacirino@jataxlaw.com 

 

 Attorneys, Jerri Ann Cirino & Michael Saraga

of counsel Susan W. Findley, all admitted in Fla.

 

In addition to the tax preparation and counseling, I maintain a large client base in preparing Wills, Estates and Trusts along with representing clients in the purchase and sale of Residential and Commercial Real Estate.

 

TAX TIPS:

The only ‘new’ deduction made available for 2007 filing is the deductibility of your mortgage insurance premiums on qualified acquisition debt. Acquisition debt is money borrowed to buy, build or improve a qualified home. Keep in mind this deduction is subject to limitations due to income.

 

New substantiation requirements for Charitable Donations began in 2007. Only donations that went through a bank, OR a written receipt from the charity are allowable. In other words CASH DONATIONS are no longer allowable. So please furnish us with only eligible contribution amounts

 

Standard milage rate increased to 48.5 cents per mile for eligible business miles. Medical and move-related milage rate is now 20 cents per mile. 

 

We again ask you to assist us in preparing your returns by following these suggestions:

 

-Organize your deductions (mortgage statements, RE tax statements, Mortgage insurance premiums, eligible charitable donations, education, childcare, etc.) together.

 

-Bring /or send us social security numbers for new eligible dependents and EIN numbers, as applicable, for childcare services provided for your children under 13.

 

-Open all envelopes before your appointment /or mailing in. Organize your income sources (W-2’s, 1099’s, brokerage statements, Social Security, unemployment, etc.) together.

 

Ensure we have current phone numbers and E-Mail Address. 

 

You will need to provide us with COST BASIS information (the purchase price and date bought) for all stocks you sold.

 

The Residential Energy Credit for installing energy conservation windows, siding, doors, heating, air conditioning, etc. was still in effect for 2007.

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Inflation isn't as certain as taxes, but it's still pretty likely. The IRS' annual adjustments help ease that inflation bite, at least slightly.

When taxpayers file their 2008 tax returns -- that's in early 2009 for most taxpayers -- they'll enjoy higher personal exemption amounts, a higher standard deduction and wider tax brackets, meaning more money is taxed at a lower rate, the IRS announced on Thursday. The dollar amounts for some tax provisions are revised each year to keep pace with inflation.

Married taxpayers who file jointly will enjoy a standard deduction of $10,900, a $200 increase from 2007, while the standard deduction for single filers and those married but filing separately will increase to $5,450, a $100 increase, and the standard deduction for head-of-household filers jumps to $8,000, a $150 increase.

 

Meanwhile, personal and dependency exemptions will rise to $3,500, a $100 increase, and the upper limit of the 15% tax-bracket will rise to $65,100, from $63,700 in 2007 for married-filing-jointly filers.

College-goers will enjoy a higher Hope credit for the first two years of post-secondary education: $1,800 for 2008, up from $1,650 in 2007.

For low- and moderate-income workers with two or more children, the earned income tax credit rises to $4,824, from $4,716 in 2007, and the income limit for the credit for joint filers with two or more children rises to $41,646 from $39,783.

Broader retirement perks

Taxpayers eager to contribute to a Roth IRA can only do so if their income is under a certain limit, but that limit increases to $159,000, up from $156,000, for joint filers and to $101,000, from $99,000, for single and head-of-household filers.

The IRS also adjusted the income thresholds that limit higher earners' contributions to IRAs. For instance, individuals who participate in both a workplace retirement plan and an IRA are generally limited in whether they can deduct their IRA contributions on their tax return.

For taxpayers who are married filing jointly, those who earn less than $85,000 can fully deduct IRA contributions if they also participate in a workplace retirement plan, up from a limit of $83,000 in 2007. After that income threshold, their allowable deductions for IRA contributions start to phase out.

Single filers and head-of-household filers will see that phase-out start at $53,000, up from $52,000 in 2007.

For those who save in a 401(k) or similar employer-sponsored plan, the maximum contribution remains $15,500, the same as in 2007, and taxpayers age 50 and older can contribute another $5,000, also unchanged from 2007.