TAX TIDBITS

It's preparation time for income tax filing. 2007 Individual Tax Returns are due April 15, 2008. Here are a few tidbits and changes to keep in mind.

Student Loan Interest Limits Went Up.  You may be able to deduct up to $2,500 of interest you paid on qualified higher education loans.

Hope & Lifetime Learning Credit Income Limits Went Up.  For 2007, you may be able to take the Hope ($1,650) or Lifetime Learning ($2,000) Credit if your modified adjusted gross income (MAGI) is between $47,000 and $57,000 (single) or $94,000 and $114,000 (married filing joint).

Charitable Donations.  You can receive a deduction for your giving to qualified organizations, like SAC-CAA and St. Aug's National Alumni Assoc. Beginning 2007, the IRS has upped the burden of proof on donations. Therefore (1) for a monetary donation, it is better to write a check or use a credit card. But should you give cash, be sure to get a receipt. (2) Make sure the organization to which you are giving, qualifies as an IRS charity, like SAC-CAA. If in doubt, ask. (3) For non-monetary giving, such as clothes, household good, etc., take a picture and make a list. Save these with your receipt from the organization. (4) Some mileage is also deductible. Make a log to record your driving to and from the site when you do volunteer work. Parking fees also apply. So, come join SAC-CAA at the Panthers Stadium or at Lowe's Motor Speedway and help yourself while you help our future alumni.

    2007 Standard Mileage Rates..                               2007 Standard Deductions...                        

  Charitable Work         14 cents/mi                           Single                                    5,350

  Medical/Moving         20 cents/mi                           Married (filing Separate)      5,350

  Business Travel          48.5 cents/mi                        Married (filing Joint)           10,700

                                                                                   Head of Household                7,850

                Single                   Married Jointly         Head of Household        Tax Rate

               $1-7,825                        $1-15,650                        $1-11,200              10%

      $7,826-31,850               $15,651-63,700               $11,201-42,650              15%

    $31,851-77,100             $63,701-128,500             $42,651-110,100              25%

  $77,101-160,850           $128,501-195,850           $110,101-178,350              28%

$160,851-349,700           $195,851-349,700           $178,351-349,700              33%

      Over $349,700                Over $349,700                 Over $349,700             35%