November 1, 2005

GOOD-NEWS TAX CHANGES coming for 2006.

Personal Exemptions and Standard Deductions will increase, tax brackets will widen and individuals will be able to make larger tax-free gifts in 2006.

More than 30 tax benefits are being modified for 2006. Here are some of the key changes that will affect your 2006 returns, which you'll file in 2007.

The value of each Personal Exemption and Dependency Exemption will increase slightly ($100) over the 2005 level. The new Standard Deduction will be increased to: $10,300 for Married-filing-Jointly, $5,150 for Singles, and $7,550 for Heads of Household.

Nearly two out of three taxpayers (but NOT YOU, if you're using my book and have a home-based business) take the "Standard Deduction," rather than itemizing. "Tax-bracket thresholds" will go up a bit, too. A married couple filing a joint return, for example, will not be forced from the 15% bracket to the 25% bracket until your taxable income reaches $61,300 (up from $59,400 in 2005).

The annual gift tax exemption will increase by $1,000, up to $12,000, from $11,000 this year.

MISSING A TAX RFEFUND?

The IRS claims they can't find 84,290 taxpayers, whose 2004 Tax Refund checks "bounced back" due to wrong address. (Do you wonder how hard they've tried to find you?) The returned checks are worth some $73 MILLION!!! The IRS says they'll re-issue the checks as soon as you tell them where you're living.

To see if YOUR refund was one of the "undeliverable" ones, go to www.IRS,gov and click on "Where's My Refund?" Or use this direct link: www.irs.gov/individuals/article/0,,id=96596,00.html.

You'll have to enter your Social Security number, your filing status (such as Single or Married Filing Jointly) and the amount of the refund you claimed on your 2004 Tax Return.

DO THEY KNOW WHERE YOU LIVE?

If you moved but didn't tell the IRS, your refund will be sent to your last known address. But unlike almost all other mail, if you don't live there anymore your refund check will NOT BE FORWARDED! It will be returned to the IRS, and they'll hold onto your money until YOU take the initiative to tell them where you live!

So, how do you let them know you moved? Don't use those address-change cards the Post Office gives you for free. The IRS wants you to fill-out their own special 2-page form, called Form 8822. You can get it at www.IRS.gov -- type-in "8822" in the field labeled Forms and Publications.

THEY'RE BACK IN STOCK.

The "Tax MiniMi$er" record-keeping system is now back in stock. My friend Bob Whitaker created the "Tax MiniMi$er" after he lost legitimate (big-$$$) tax deductions in IRS audits due to inadequate or incomplete records.

If you use this system for recording your own business expenses and tax deductions, any auditor will congratulate you on how complete and accurate your records are. It is easy to use, and IRS compliant You can learn about it at www.homebusinesstaxsavings.com/hmyk/tax-saving-tools/ tax-minimizer.html.

Also, both recruiting / closing brochures are back in stock. See www.homebusinesstaxsavings.com/hmyk/biz-success-tools/ powerful-brochures.html.

Just two months left to slash your 2005 taxes.

P.S. -- In case you missed the announcement, we've just released the all-new 4th Edition of "It's How Much You KEEP, That Counts! Not how much you Make." Available for as little as $27.95 at www.HomeBusinessTaxSavings.com. If this "Plain English" guide can't lead you to new home-business tax deductions worth at least 100-times what you paid for it, I will buy it back from you anytime for up to a full year. Now THAT's the Mother of all guarantees!

There's another 'Tax Tip You Can Bank On.'