Recent tax law changes that will most likely affect you during this tax filing season.

Contributions to Individual Retirement Accounts, better known as IRAs, have been increased for eligible persons up to $3,000 per year. Also, if you are at least 50 years old, you may make an additional catch-up contribution of $500.

The adoption credit available for individuals has been increased to $10,000 per child. Basically, all costs associated with the adoption process which include attorney, court and travel costs will be deductible if they are necessary and within reason.

Schoolteachers may now deduct directly from their income up to $250 of their unreimbursed school supplies, which they use in the classroom. Prior to this year, schoolteachers could only deduct those costs as an itemized deduction.

The parents of first and second year college students may deduct qualified higher educational expenses known as the HOPE Credit. Also, there is a LIFETIME Learning Credit for educational expenses available for anyone.

Self-employed taxpayers may now deduct up to 70% of your health insurance for you and family. This will also include premiums paid for qualified long-term care insurance. These costs are deducted directly from your income. You do not need to itemize.

A retirement credit may be taken for certain taxpayers whose income falls within certain ranges. This credit ranges from 10% - 50% of the retirement contribution. Retirement contributions cover IRAs, SIMPLE Plans, 401Ks, etc.

If you would like more information on the above topics, please contact us at 859-986-3756. We are located at 206 ½ Richmond Road in Berea.

You may reach Sammy at SammyLee@skleecpa.com