Check the changes before filing your 2005 tax return
January 5, 2006
Cordele- Tax season is quickly approaching and there are some new rules that could save you some money this year. More seniors may now qualify as tax exempt after an increase in income eligibility levels to $25,000.
"With seniors if they earn less than $25,000 plus half of their social security amount they do not have to pay tax on social security," said Annie Smith, Cordele H & R Block Office Manager.
Also, to compensate for high gasoline costs in 2005, the standard business mileage rate was raised from 40.5 cents per mile to 48.5 cents per mile for miles driven after September first.
One change that could hurt many people, some single parents can no longer claim a head of household status. They should check with the IRS or their tax preparer to see if they still qualify. The provision could cost families around a thousand dollars or more depending on income.