does anyone know about the new tax thing this year? Where we can not file taxes until like april or something like that? Does that mean what we work in jan feb and march will all go on our 2007 tax return or on 2008? my roommate told me he heard something about it on the news the other day. I'm looking forward to my tax return in like jan or feb, and this has me a little freaked. if anyone knows about this or has even heard anything about it, please let me know asap. thank u very much.
2007-12-15 15:22:11 · 4 answers · asked by sbarne8 2 in Business & Finance ➔ Taxes ➔ United States
Your roommate is totally confused.
The return you file in early 2008 will be for money earned in calendar year 2007.
There's something called an alternative minimum tax, that when it was started around 40 years ago, was meant to ensure that very high income people could not avoid paying taxes by having a lot of deductions. When Congress wrote the law, they set a dollar limit for it to affect. With inflation, many people who are not "very high income" people are now affected by it. Congress has been patching it each year, setting a higher limit, rather than fixing it once and for all. This year, congress has not yet passed a fix. So either people affected by it will have to pay higher taxes, or else they'll have to wait to file until either Congress acts, or it's clear they aren't going to do a fix in time, so the people will have to file late in the season, and pay the AMT. If you make under $75,000 a year, don't even worry about it, it won't affect you - and unless you are filing as married filing separately, the limit is somewhere over $100,000..
2007-12-15 15:46:08 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
You will fill out your taxes exactly the same way you always do. Only 2007 income goes on the 2007 return.
The delay will probably not affect 1040EZ returns.
The delay is due to congress/senate/white house arguing over the parallel tax system called AMT. The Alternative Minimum Tax is only supposed to affect "rich" taxpayers and generally hits 2.5 million taxpayers a year (about 1 in 40). The law as it currently stands will affect 25 million people (ten times as many). They are debating how to change the rules...but have been arguing since October. The IRS told them to make up their minds by November 1st so they could recode the computer programs they use to check tax returns. It's now December 10th and the debate is still going on.
The processing delay (again I don't think it will affect 1040EZ) will push the start date for processing returns out to, say, March.
As far as income goes, it depends on how many dependents you've got. A MFJ couple with 3 children will owe AMT under the default rules at about $60,000.
2007-12-15 23:29:08 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Your roommate has it all wrong. There is a possibility that the IRS processing of returns may be delayed if Congress doesn't get off its fat a** and finish legislative changes to the tax code. Your return will still be for 2007 - it just may be delayed in processing.
2007-12-15 23:27:53 · answer #3 · answered by npk 7 · 1⤊ 0⤋
NO- it doesn't include the new year's months, it's just that Congress hasn't decided what they are going to hit us with yet this year, so, you may not be able to file until April---which doesn't really mess the normal person up but it does college students because they have to file their FAFSA's so you will have to just fill in your W2 info and put not filed---like they won't know that...and sit and wait......what it will do is keep people from getting refunds early.......like that's not their main intent in all of this in the first place..........wouldn't you like to tell your landlord, oh, I haven't decided how much I'm going to pay you yet for the next few months, so wait until April!!! This country is going to hell, one broken rule after another
2007-12-15 23:37:47 · answer #4 · answered by mac 6 · 0⤊ 2⤋