It’s Not Too Late To Get The Most Out of Your Tax Return

NORTH CHARLESTON, S.C. – Just because 2004 is a memory and April 15 is right around the corner, the Corporate Tax Preparation Team at JK Harris says it’s not too late to squeeze a little more out of your tax return.

There are several opportunities still available to legitimately keep as much away from Uncle Sam’s grasp as possible. You just have to know how what you’re doing, and it helps to stay on top of things, as there are some new wrinkles available for the 2004 tax year.

The Working Families Tax Relief Act of 2004 provides for a new deduction this year as it allows taxpayers to elect to take state and local general sales and use tax as an itemized deduction, instead of deducting state and local income taxes. Also for the 2004 tax year, IRS section 179 permits direct expensing of up to $102,000 of qualifying property (subject to an income limitation and an investment limitation) for all taxpayers except estates and trusts.

Also new for 2004 filers are several changes to the rules for claiming the earned income credit. A taxpayer no longer needs to qualify as head of household or have the higher adjusted gross income to qualify for this credit.

In addition, teachers, counselors, principals, and aides were previously only able to deduct qualified classroom expenses as a miscellaneous deduction subject to the two-percent Adjusted Gross Income (AGI) limitation. For 2004 and 2005, they can each deduct $250 as an adjustment to income without having to itemize deductions.

Persons who pay higher education costs can claim the Hope credit and the lifetime learning credit. The maximum Hope credit is $1,500 per student, and the learning credit maximum is $2,000. This phases out if adjusted gross income reaches a certain level, which might eliminate these credits. As an alternative, up to $4,000 of qualified tuition expenses can be deducted above the line to reduce the AGI, and the remaining AGI limitation is higher than for the credits.

There are other changes, too, and JK Harris recommends that you consult a credible tax practitioner to make sure you get all the deductions that are rightfully yours. JK Harris & Company prepares thousands of tax returns for individual and small business owners annually.

JK Harris & Company, LLC (www.jkharris.com), based in North Charleston, S.C., is the nation’s largest tax resolution company with over 475 satellite offices in 46 states and has served more than 130,000 clients. It was founded in 1997 by John K. Harris. JK Harris also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, mortgage services, tax return preparation, and assisting individuals who require support for an IRS audit.