Getting the Most Out of Your Tax Return

Christopher W. Fleming, Inc. ensures to take full advantage of available tax laws and work hard for you!

By now, you have probably received your W-2’s and other basic information necessary to file your income tax returns for 2006. As you look through the information, you may feel overwhelmed wondering what you should do from here. After all, so many laws have changed that the IRS cannot even keep up with printing current forms.

With professionals available like Christopher Fleming, you do not have to worry. Fleming makes it his business to keep up with the latest tax legislation and he will work hard to ensure that you take full advantage of available tax laws, no matter how many laws change.

Fleming points out two important pieces of legislation that could impact your tax returns for 2006:

• First, the new Tax Increase Prevention and Reconciliation Act (TIPRA) contains several tax breaks and adds revenue raisers. “TIPRA retroactively extended a number of popular tax breaks, added several new tax breaks and included a number of revenue raisers,” says Fleming. TIPRA’s provisions are significant to both individual taxpayers and business owners as well.”
• Second, the Pension Protection Act of 2006 (Pension Act) is also worth mentioning. “Many of the changes in this legislation actually have nothing to do with pension plans,” says Fleming.  “Other areas affected by the Pension Act include education planning, retirement planning and charitable donations.”

By paying attention to details such as these, Fleming earns the trust and confidence of taxpayers who want to file the most accurate tax return possible while still taking advantage of all the applicable tax laws that may benefit them. Some might even justify paying extra for such expertise, but they do not have to. “One misconception is that local accounting firms are more expensive than the large national tax preparation providers,” Fleming relates. “However, we are not. Actually, my office will prepare your 2006 taxes for 10 percent less than what you had your 2005 taxes prepared for if you are a new client.”

Excellent service accompanies your fee as well. Fleming electronically files all individual tax returns, which according to the IRS is the safest and most accurate way to file a tax return.  Otherwise, if you send in your return by mail you can expect to wait up to six weeks for your refund. By electronically filing your return and electing to have your refund deposited directly into your bank account you can expect your refund in 9 to 16 days on average.

Fleming outlines a few more changes for 2006 that you may want to take advantage of:

• The IRA contribution limit remains at $4,000, but the amount those age 50 and older can contribute increases to $5,000.
• The standard mileage rate for business driving in 2006 is 44.5 cents per mile, and the mileage rate for medical and moving expenses is 18 cents per mile.
• A new tax credit is available for energy-saving improvements made to your home. The credit is 10 percent of the cost, with a life-time limit of $500. Another credit is available for up to 30 percent of the cost of solar powered hot water systems.
• The amount of wages subject to social security tax increases to $94,200. Retirees under age 65 can earn $12,480 in 2006 without losing benefits.
• The first year business equipment expensing limit increases to $108,000. As before, the limit for SUV’s used in business remains at $25,000.
• A new tax credit is available in 2006 for the purchase of certain hybrid or alternative fuel vehicles.
• New this year are tax credits for contractors who build energy-efficient homes and for manufacturers of energy-efficient appliances.
• Unbelievably, these are only some of the changes 2006 brought to the tax world.

In addition to tax preparation services, Christopher W. Fleming, Inc. also provides bookkeeping, payroll, incorporation and many other services. To learn more about what is new for the 2006 tax season or for more information on any of the other services mentioned, contact Christopher W. Fleming, Inc. for an appointment.

For more information, contact

Christopher W. Fleming, Inc.

Claremore Office:

(918) 341-0900

Owasso Office:

(918) 379-4494

www.christopherwfleminginc.com