Tuesday, August 5, 2008

Taxable Breaks & Deductions

There are so many taxpayers that don't file their taxes when they could claim deductions such as personal exemptions and dependant. You can claim a deduction for yourself, called personal exemption. You can claim a deduction for your spouse on joint return. And you can claim a deduction for each of your dependents. In 2006 and 2007, the exemption amount is $3300.

Normally the most favorable filing statues is married filing joint, but in some causes its married filing separately. For example, if one of you has very substantial medical or employee business expenses, you may be able to reduce your combined tax liability by filing separate tax returns. In addition, if one of the spouses has tax liability, the other spouse wants no part of then it would behove the couple to file separately.

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