Season's greeting to all clients of Le's Office and friend! It is time to begin preparing for the income tax filing season. Start by collecting and keeping track of your income and deduction documentation.	KEY  EXEMPTION AND DEDUCTIONS : www.irs.gov 1.NO  PERSONAL EXEMPTIONS : The personal exemption for each qualifying dependent   : Exemption  : $ 0 2. STANDARD DEDUCTIONS : for tax year  Married Filing Joint $29,200 Single $14,600 Head of Household $21,900 Married Filing Sep $14,600 Elderly / Blind : married  + $1300 Elderly / Blind : unmarried + $1950   3. STANDARD MILEAGE RATES : The standard mileage rates : www.irs.gov                               a. Business :             $.67 / mile                                  b. Charitable work : $ .14 / mile                                   c. Medical/Moving : $ .21 / mile      4. HEALTH INSURANCE PENALTY  :  No penalty in tax year  5. Self Employment :
TAX RATES : www.irs.gov Income Tax Brackets : 1. TAX RATE 10% : Single(S) , Married Joint(MJ), Head of Household (H) $1 - $9225(S) * $1 - $18150(MJ) * $1 - $ 12950(H) 2. TAX RATE 15% : $9076 - $36950(S) * $18151 - $73800(MJ) * $12951 - $49400 (H) 3. TAX RATE 25% : $36901 - $89350(S) * $73801 - $148850(MJ) * $ 49401 - $ 127550(H)	TAX CREDIT  - DO YOU QUALIFY ?  www.irs.gov Each year taxpayers claim a variety of tax credits for which they are eligible. Tax credits are valuable because they are a dollar -for-dollar reduction of taxes owned. 1. The Earned Income Tax Credit : is a refundable credit for low -income working individuals and families. Maximum Credit : $600(none children ), $3995 (One Child), $6604(Two children), $7430 (Three or more Children).  You can claim EITC for Max 3 Children.  *** Investment income Limit for EIC : $11000 2. The Child and Dependent Care Credit : is for expenses paid for the care of children under age 13, or for a disable spouse or dependent. 3. The Child Tax Credit : is for people who have a qualifying child.  The maximum amount of the credit is $2000 for each qualifying . 4. The Adoption Credit : is  a tax credit of up to $15950  for qualifying expenses paid to adopt a child. 5. The Credit for the Elderly or the Disablle : is a credit available to individuals who are either age 65 or older or under age 65 and retired on permanent and total disability.
NEW  TAX LAWS : www.irs.gov - TAX SAVING  -Energy Tax Credits :   -  . - First-Time Homebuyer Credit :   none - Education Credit :  You may qualify for maximum annual credit of $2500 per student. Earn Income Tax Credit :  you may claim up to 3 children ( Max $6660).   Taxpayer must be older than the Child in order to claim EITC.	MORE  TAX UPDATE . If you want more tax update, please link the line below, you will be automatic link direct to IRS web site :www.irs.gov  If you need more information or have any question, please call Tom at 585-330-9263