PRESSLEY TAX SERVICES
“WORKING HARDER TO SAVE YOUR TAX DOLLAR”
“WORKING HARDER TO SAVE YOUR TAX DOLLAR”
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► Tax Incentives for Higher Education
The tax code provides a variety of tax incentives for families who are paying higher education costs or
are repaying student loans. You may be able to claim an American Opportunity Credit or Lifetime
Learning Credit for the qualified tuition and related expenses of the students in your family who are
enrolled in eligible educational institutions.
► Check Withholding to Avoid a Tax Surprise
If you owed tax last year or received a large refund you may want to adjust your tax withholding. Owing
tax at the end of the year could result in penalties being assessed.
► Amended Returns
Oops! You've discovered an error after your tax return has been filed. What should you do? You may
need to amend your return.
► Ayuda en Espanol
If you need federal tax information, the IRS provides free Spanish language products and services.
Pages on the IRS.gov, pre-recorded tax topics, refund information, tax publications and toll-free
telephone assistance are all available in the Spanish-language.
► Filing an Extension
If you can't meet the April 15 deadline to file your tax return, you can get an automatic six month
extension of time to file from the IRS. The extension will give you extra time to get the paperwork in to
the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any
amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90
percent of your total tax by that date.
► Car Donations
The IRS reminds taxpayers that the rules for taking a tax deduction for donating cars to charities have
changed. The American Jobs Creation Act of 2004 has altered the rules for the contribution of used
motor vehicles, boats and planes after Dec. 31, 2004.
► Charitable Contributions
When preparing to file your federal tax return, don't forget your contributions to charitable organizations.
Your donations can add up to a nice tax deduction if you itemize on IRS Form 1040, Schedule A.
► Hybrid Vehicles
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit known as the
Alternative Motor Vehicle Credit. The tax credit for hybrid vehicles applies to vehicles purchased or
placed in service on or after January 1, 2006.
► Earned Income Tax Credit for Certain Workers
Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit
(EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify
and claim the credit could pay less federal tax, pay no tax or even get a tax refund.
► Refinancing Your Home
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans.
► Credit for the Elderly or Disabled
You may be able to take the Credit for the Elderly or the Disabled if you were age 65 or older at the end
of last year, or if you are retired on permanent and total disability, according to the IRS.
The tax code provides a variety of tax incentives for families who are paying higher education costs or
are repaying student loans. You may be able to claim an American Opportunity Credit or Lifetime
Learning Credit for the qualified tuition and related expenses of the students in your family who are
enrolled in eligible educational institutions.
► Check Withholding to Avoid a Tax Surprise
If you owed tax last year or received a large refund you may want to adjust your tax withholding. Owing
tax at the end of the year could result in penalties being assessed.
► Amended Returns
Oops! You've discovered an error after your tax return has been filed. What should you do? You may
need to amend your return.
► Ayuda en Espanol
If you need federal tax information, the IRS provides free Spanish language products and services.
Pages on the IRS.gov, pre-recorded tax topics, refund information, tax publications and toll-free
telephone assistance are all available in the Spanish-language.
► Filing an Extension
If you can't meet the April 15 deadline to file your tax return, you can get an automatic six month
extension of time to file from the IRS. The extension will give you extra time to get the paperwork in to
the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any
amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90
percent of your total tax by that date.
► Car Donations
The IRS reminds taxpayers that the rules for taking a tax deduction for donating cars to charities have
changed. The American Jobs Creation Act of 2004 has altered the rules for the contribution of used
motor vehicles, boats and planes after Dec. 31, 2004.
► Charitable Contributions
When preparing to file your federal tax return, don't forget your contributions to charitable organizations.
Your donations can add up to a nice tax deduction if you itemize on IRS Form 1040, Schedule A.
► Hybrid Vehicles
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit known as the
Alternative Motor Vehicle Credit. The tax credit for hybrid vehicles applies to vehicles purchased or
placed in service on or after January 1, 2006.
► Earned Income Tax Credit for Certain Workers
Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit
(EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify
and claim the credit could pay less federal tax, pay no tax or even get a tax refund.
► Refinancing Your Home
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans.
► Credit for the Elderly or Disabled
You may be able to take the Credit for the Elderly or the Disabled if you were age 65 or older at the end
of last year, or if you are retired on permanent and total disability, according to the IRS.