US 2006 Tax Law Changes

The former 2006 tax laws were posted on the IRS website. The US 2006 tax law changes have been posted on the internet for your reference.

According to the website of the IRS, 2006 tax laws have changed for the better. For instance, in the 2006 new tax laws, the Archer MSA limits were increased to $1800 for individuals and $3650 for family coverage. In addition, the amounts for earned income credits have increased.

Also in the 2006 tax law changes, deduction amounts have increased from $3200 in 2005 to $3300 in 2006 for each exemption. In addition, the Health Savings account deductions have increased. The IRS' 2006 tax law on educator expenses has changed. The limit has increased and the amount a couple can claim has risen slightly. Another pleasant change is that you can have your refund deposited in to three different accounts – a savings, checking, retirement plan – which ever you choose.

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Furthermore, the income limit for reduction of education savings bond exclusion has increased in 2006. As well, the earned income that determines the additional child tax credit has increased to $11,300. Certain charitable donations limits have risen. The alternative minimum tax changes were put into effect for 2006 and include a rise in the exemption amount, child exemption amount, a new worksheet for foreign income earned, and ethanol plant property. Education credit income limits has increased since 2005. Children under the age of 18 who have investment incomes are now taxed at under their parents tax rate.

The limit on long-term care and death benefits has increased from 2005's rates. There are now residential energy credits for US citizens. However to be eligible for these credits, you must have done some energy saving renovations that meet the energy efficiency requirements.

The electric and alternative vehicle list has expanded, so check that list to see if you have purchased a vehicle on that list. Even the clean-fuel and electric vehicles refuelling deduction has changed – it has decreased by 75%.

The 2006 federal tax laws are meant to be obeyed. If they are not adhered to, fines and interest could be laid. So if you know what the IRS' 2006 tax law changes are, you can follow them and avoid these possibilities.

There are more 2006 new tax law changes. The IRS has posted them clearly on their website for 2006, 2007, and later. Find out what the changes are so you can file your taxes properly.