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2007 Federal Tax Table

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Jacqueline Said:

Will I need my 2006 tax returns in order to fill out my 2007 returns??

We Answered:

If you itemized, in most instances you will. Good examples are if you paid alternative minimum tax {AMT} in 2006, depreciation
tables; year ending inventory for 2006, IRA information because software asks you for fair market value of the investments, net operating loss carryover, and, especially, if you sold stock, stock funds or mutual funds. I say that because the brokerages only send to the IRS proof of the sale transaction. That means the IRS thinks that is all income. You have to prove that you bought the stock and paid commission - you were not given the shares.

I say if you paid alternative minimum tax in 2006 because you would need lines 1, 6, 10 and 35 of the Form 6251 to fill out the Form 8801. Depending upon your situation, you may need our 2255 or 2255-EZ Form and the Form 1041, Schedule I, Line 56. If you use software, most programs provide these Forms.

If you had a business, you will need the 2006 Schedule C. If you used software, you probably filled out depreciation and it should still be in there.

There's a lot of things you could have forgotten or what you need: e.g, social security numbers of your dependents, taxpayer identification number of your child care provider, 2006 adjusted gross income {AGI} - your adjusted gross income and your income tax liability if any of your children are applying for a student loan. Frequently, FAFSA applications ask for YOUR tax return. If your software carries everything over, you appear to have no problem. However, sooner or later, you will want to check to make sure the software did it correctly. The previous year's adjusted gross income comes up frequently. If you are buying a dwelling or land, the bank will ask for your prior three years Federal income tax returns.

Unless you are a real estate professional, only 25000 of real estate passive activity losses can be deducted on the Schedule E. You had to carry over the remainder.

You will need Line 10 or your Schedule A. You need to see if your deductible mortgage interest is a little lower than 2006 {all other things being equal, of course}. If you paid on the house or investment the entire year, and the bank 1098 form that the bank mailed to you has a much lower figure than 2006, you will need to call the bank to find out why you can deduct so little for 2007.

Having the 2006 will "trigger" your memory. E.g, maybe you forgot that you refinanced in 2006 and you need to fill out an Amended to deduct the remainder of the points on the original loan.

I could go on but you see my point. Adjusted gross income and carryovers are the big thing. Hope you find your 2006. This may help a little:
2006 THIS YEAR
Exemption worth: 3300 3400
Standard deduction
single worth: 5150 5350
MFJ: 10300 10700
Medical miles: .18/mile .20/mile
Charitable
miles .14/mile .14/mile
Standard mileage rate for
hurricane Katrina: .32/mile
Employee
business expense
auto miles: .445 .485
IRA deduction: 4000* 5000*

You mentioned that you itemized for 2006. You may need those forms because you may have had to carry over some charitable contributions that were disallowed last year.

It is best to have a designated and safe place to store you prior year's income tax returns, along with the receipts, documentation and diaries of expenses for that particular tax year. It's actually worth it to rent a small safety deposit box at the bank. You may be able to deduct some or all on the Schedule A in subsequent years.
*1000.00 in addition if age 50 or older on the last calendar day of the year.

Connie Said:

How to amend Fed & State 2007 return to add real estate taxes?

We Answered:

It is not the most difficult process, but you have to prepare the amendments properly and attach all the proper paperwork before the IRS will accept the return. I am going to attach a link to the IRS to the form 1040X with the instructions. Also the Sch. A, Itemized Deductions. You will also have to use the tax laws and tax tables for 2007.

I suggest you contact the person that prepared your original tax return to check on the price of an amendment. Also you can call around to other tax services to see if they are able to help you with the process.

Hope this helps.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Jon Said:

how much tax will you have to pay in oregon if you make $26,000 per year????

We Answered:

You'd have to read a little more on the OR and federal tax structure to see what your adjusted gross income based on deductions would be, but here's the basic tax tables for both:

How Oregon State income tax rates are structured

The tax table below will show in detail the Oregon state income tax rates by income tax bracket(s). There are 3 income tax brackets for Oregon.

If your income range is between $0 and $2,600, your tax rate on every dollar of income earned is 5%.
If your income range is between $2,601 and $6,500, your tax rate on every dollar of income earned is 7%.
If your income range is $6,501 and over, your tax rate on every dollar of income earned is 9%.

Note: These tax rate schedules are provided so that you can compute your federal estimated income tax for 2007. To compute your actual income tax, please see the instructions for 2007 Form 1040, 1040A, or 1040EZ as appropriate when they are available.
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Schedule X — Single
If taxable income is over-- But not over-- The tax is:
$0 - $7,825 = 10% of the amount over $0
$7,825 - $31,850 = $782.50 plus 15% of the amount over 7,825
$31,850 - $77,100 = $4,386.25 plus 25% of the amount over 31,850
$77,100 - $160,850 = $15,698.75 plus 28% of the amount over 77,100
$160,850 - $349,700 = $39,148.75 plus 33% of the amount over 160,850
$349,700 - no limit = $101,469.25 plus 35% of the amount over 349,700

Carol Said:

How much tax will I pay with a 45,000 salary?

We Answered:

pusherhombre is on the right track. However, you would pay LESS on the same income in 2007. The reasons are that the standard deduction and the tax bracket divisions usually go up based on inflation. A larger deduction decreases you taxable income.

$45,000 Gross Pay
$5150 Standard Deduction (Single 2006)
$3,300 Personal Exemption (2006)
$36,550 Taxable Income
$5,561.25 Tax using 2007 tax table.

If your state has an income tax, that is in addition to the federal tax. Social Security/Medicare tax is 7.65% of gross.

June Said:

One job didn't take any federal tax out?

We Answered:

With income that low they probably wouldn't, based on the withholding tables. She probably declared 4 exemptions too. That decreases the amount of withholding.

Suggestions: file your return with Turbo Tax, pay if you owe and change the withholding amounts for 2007. Your Ad Here

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