Want to give yourself a tax cut this year? Liberty Tax Service urges you to take action now, assess your tax situation and see if you can take some tax-saving measures before Jan. 1. A clearer understanding of a few recent tax charges can clarify what effect the various changes can have on your current federal tax liability. The child tax credit has increased from $600 to $1,000 per child. “Taxpayers who received a check for the Advance Child Tax Credit should locate IRS Notice 1319 that specifies the amount of the credit they were to receive,” said John Hewitt, CEO and Founder of the Liberty Tax Service. “Taxpayers who got part of their child tax credit in advance this summer will subtract that amount from the total amount that they may claim on their 2003 tax return.” Consider stock sales before Dec. 31, 2003; that could add up to tax savings on your 2003 tax return. o See if there’s income you can defer until 2004. o Teachers, find your receipts for up to $250 for qualified classroom supplies you have purchased so that you may deduct them, or make purchases before the year’s end. o Check to see if you have enough medical deductions to itemize (over 7.5% of AGI). There is still time to schedule that trip to the eye doctor or dentist. o Self-employed and using the cash method of accounting? Pay bills on or before Dec. 31, 2003, to claim the expense on this year’s return. o Self-employed persons, who can expense equipment under section 179, can purchase additional but necessary items such as computers and fax machines before Jan. 1, 2004. o Make contributions to your traditional IRA and calculate the difference it could make. The maximum IRA contribution is $3,000. Taxpayers, age 50 and over, can contribute up to $3,500. Call (800) 790-3863 ext. 5022 or visit www.libertytax.com for more information. Liberty Tax Service operates in the United States and Canada. The company specializes in computerized tax preparation, electronic filing and refund anticipation loans.
