Nevada County Picayune and Gurdon Times Newspaper Archive

Tax break can help those with children

Income tax filers with children 16 and younger will have a pleasant surprise, if qualified for the Child tax credit, says Quick Tax #3 owner Sue Frisby.

"We were expecting the child credit to go down to $600, but it has remained at $1,000," she said. "It all depends on if the taxpayer meets all of the qualifications for this credit, but it is helping a lot of people this year."

Frisby provided the following highlights, from the IRS, about changes in 2004 tax law. The one referred to reads: Child tax credit - For 2004, the credit for each qualifying child is $1,000 and the refundable portion is increased to 15 percent (up from 10 percent) of earned income exceeding $10,750. Tax free combat pay is treated as earned income when figuring the refundable credit.

In other changes, the IRS noted mileage rate for business travel has gone up in 2004 from 36 cents per mile to 37.5 cents per mile.

Also, teachers should not an educator expense deduction. For 2004 and 2005, teachers and other professionals who work at least 900 hours in public or private elementary or secondary schools may deduct up to $250 of out-of-pocket costs for books, supplies, computer software and other classroom materials.

Frisby said a complete copy of the changes is available through the IRS.

"This time of year, we have a lot of fast refunds," she said. "And it gets busy around here. I would advise anyone to itemize if you qualify. For example, you can get 14 cents a mile for medical miles, back and forth to the doctor."

In a change in Arkansas, there is now a Certificate for Developmentally Disabled Individuals who have: cerebral palsy, epilepsy, autism or Down's Syndrom, which can result in up to a $500 tax credit.