There are a lot of tax forms and it can be difficult to keep them all straight. One of them is the form 1040A for 2006 and it is important to know about the changes this form has for the current tax year. Most tax forms change from year to year at least a little bit so keeping up with the new information is critical in order to file your taxes correctly.
One of the new elements of the 1040A is that individuals who paid federal telephone excise tax on their long distance service may be able to receive a credit. Something else new is that the form 1040A has an increased AMT, or alternative minimum tax exception. The amount for 2006 is $42,500 or $62,550 for those married filing jointly or $31,275 for those married and filing separately. Those who were on jury duty may report their income on the form 1040A. Those who paid their jury duty to their employers may possibly be able to deduct it. Any penalty from withdrawing money early from savings may be deductible on the form 1040A. The Earned Income Credit may be taken for those who have a child that lived with them and earned $36,348 or less or $38,348 married filing jointly. Or, those who did not have a child living with them and earned $12,120 or less or $14,120 married filing jointly.
More people may be able to get the credit because the maximum AGI is higher for 2006. Take the credit if your AGI is less than the amount that is applicable to your income. Those who have an investment income of $2,800 or less may qualify for the credit. Those with more investments do not qualify. Some last minute changes were made by Congress and only the long form has all the information that allows you to get all the tax deductions and credits. These include deductions for higher education tuition and fees as well as deductions for educator expenses.
Knowing this information about the tax form 1040A will help you file correctly for tax year 2006 and take advantage of all of the deductions and credits available to you.
Caitlina Fuller is a freelance writer. Form 1040A for 2006 and it is important to know about the changes this form has for the current tax year. One of the new elements of the 1040A is that individuals who paid federal telephone excise tax on their long distance service may be able to receive a credit.
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