1.
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Question: How much can I put into my retirement plan for 2006?
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Answer: Traditional and Roth IRAs $4,000 (over age 50: $5,000)
SIMPLE IRA $10,000 (over age 50: $12,500)
401(k) $15,000 (over age 50: $20,000)
SEP $44,000
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2.
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Question: What is the Social Security Limit?
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Answer: In 2006, the income limit rises to $94,200.
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3.
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Question: Where is my federal refund?
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Answer: Haven’t received your anticipated refund? Go to IRS Article 96596, have a copy of your return in front of you, and see the status of your refund.
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4.
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Question: How do I deduct my business use of auto?
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Answer: A taxpayer can substantiate car expenses by keeping a log or “accounting” of the exact amount paid for auto costs, however the standard mileage rate is a simplified method available to calculate deductible costs. The standard mileage rate for 2006 is 44.5 cents per mile driven. The rate is increased to 48.5 center per mile for 2007.
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5.
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Question: I am not ready to file by the due date, what are my options?
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Answer: You can extend the due date for filing, not paying, your tax return. Individuals can get an automatic 6 month extension for Form 1040 by filing form 4868. Effective in the 2005 tax year, only one extension is required for the 6 month period. Previouslym the first extension was for 4 months, and a second was required for an additional 2 months.
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6.
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Question: How do I get an Employer Identification Number?
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Answer: To obtain an EIN Go to the IRS website at Employer EIN Numbers - How to Apply. You can file an online form and get your EIN number immediately!
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7.
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Question: When am I required to issue a 1099?
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Answer: You are required to issue a 1099 to each non-incorporated entity that has been paid more than $600 in a calendar year.
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8.
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Question: Read the new newsletter!
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Answer: Go to the newsletter link on top of this page.
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