New tax deduction

Good useful info!! It's the time when everything get mixed up and papers are not arranged properly. Thanks for the reminder.

Yep, I claimed mine! :-)

Can you do this even if you have the "package deal" where long distance calls are included?

No, I don't think you can, it goes back to 2003. So if you didn't have the package deal at anytime between 2003 to present then you could probably claim it.

That's sweet! Every little bit definitely helps.

Yea, I claimed it also. But I only got $30.00...hey, every dollar helps :D

Just a reminder, too, if you did any sort of home improvement, check out the deduction for energy efficient home improvements. It allows a deduction for a new water heater, furnace, insulation, etc. My co-worker just found out from her tax pro that she could deduct the insulation & 2-x-4's they used to insulate the basement (the 2x4's were allowed because they are needed to support the insulation) of their house.

Also, don't forget to claim your property taxes, if applicable.

Be careful, however, in claiming large amounts of donated items to places such as Goodwill, Salvation Army, etc. The IRS is cracking down on this deduction, and you will be asked to provide itemized receipts signed by the charity, with the value determined by the charity. So if you donated, take care when claiming this deduction.

Check to see if your state allows a home heating credit. Michigan does. It allows a refund of a portion of what you paid for heat in the prior winter months. It will be sent directly to your heating provider for application to your account.

So how does the telephone thing work? Do I need receipts because I can get that out of the storage (I keep everything!).

How do I claim home improvements?

Alexandra - the phone tax deduction can work one of two ways: you can provide receipts showing the phone service dating back to around 2003 (thanks for that, Steelers!), or you can choose to take the standard deduction, which amounts to about $30 or so. I took the standard deduction myself - I don't have the bills dating back that far! (My dad has his, though, go figure!)

To claim home improvements, have your tax preparer go over the deduction with you. It allows a deduction for a variety of home improvements, provided they were made in an effort to make the home more energy efficient. A new water heater, new furnace, alternate heat source (like a corn burner), or other such improvements can be deducted. If you are doing your taxes yourself, using TaxAct or Turbotax, there are screens that will walk you through this deduction.

My mom is on ss/disability so she does not file a tax return . Would she be able to make some kind of claim for the telephone tax? I figure every bit helps her.

taksmom - yes, there is a 1040 form she can file to get the phone tax refund. Check at your post office or local library for the hard copy of the form, or go online to IRS dot gov

Thanks SueBee! I'm trying to help her caught up on her property taxes and figured every bit helps.

You're welcome, taksmom - glad to help! Does your state also allow a home heating credit (mostly for really cold weather states)? Michigan does, and you can file for the home heating credit without filing taxes. Again, there's a form available for it.

I'm not sure about the home heating credit. I'm from PA, but I'm gonna look into it for her.I know we have a property tax rebate wher she could get up to 600 back but you have to be current on your property taxes which she is not.I'ts realy tough for her on her income so I'm trying the best I can to find things out for her and help her the best I can.Thanks for the info.

no problem, taksmom - keep us posted!