Tax season has arrived, and the tough economic times have caused citizens to focus on smart tax preparation in order to get the largest tax refunds possible.
      Due to some tax updates during the past year, individuals might be able to claim additional deductions or tax credits.
      "A lot of people are unaware that on the state portion, you can deduct your vehicle registration," said Christie Kessel of Liberty Tax Service.
      For individuals looking to the future, IRA contribution limits have increased. The contribution limit is currently $5,000, which is a $1,000 increase from last year. Tax payers aged 50 or older by Dec. 31, 2008, can contribute up to $6,000. The IRA funds can be given by April 15.
      The IRA amount has increased due to several reasons, but one reason has to do with being an incentive for individuals to not have to rely on Social Security when they retire.
      "There's skepticism about whether or not Social Security is going to be around in 40 or 50 years," said Kessel.
      Parents of children attending school have good news; textbook and tuition credits can be given for students in grades kindergarten through 12th grade.
      "They have enhanced or greatly increased education credits," said Jodi Kerr of TD&T Financial Group PC. Double tax credits are available and parents of students attending college in declared disaster areas can claim expenses of room and board and books. In the past, only tuition could be claimed. Indian Hills Community College, Iowa Wesleyan College and the three Iowa state schools were all in declared disaster areas.
      "The colleges have done a decent job of sending out information to parents, but they didn't get really specific," said Kerr.
      Individuals claiming mileage on their taxes are looking at saving some money. For the first half of the year, 50.5 cents per mile can be claimed, and the amount hopped up to 58.5 cents for the second half of the year. Also, anyone who can claim mileage relating to charity purposes for the flooding disaster can claim 27 cents per mile, which is an increase of 8 cents per mile.
      "That's much higher than the normal rate, which is 14 cents," said Kerr. "Also, people who housed a victim during flooding can get a tax incentive."

For the complete article, see the Friday, February 20, 2009, Fairfield Ledger.