John Boehner, Jan 11, 2008

Washington - It’s a new year but some things remain the same: it’s almost time to pay the tax man and you will no doubt be confused over the complexity of our tax code. Our bloated tax code is symptomatic of what is wrong with the federal government: it’s too big, too complex and, so far, too unwilling to change its ways.

Reforming the tax code to make it easier for Americans to file their taxes and get refunds in a timely manner should be one of Congress’ priorities. Unfortunately, Washington hasn’t gotten serious about tax reform so taxpayers this year have no choice but to navigate the current code as best they can.

This year, millions of tax refunds will be unnecessarily delayed because Congress put off voting on a "patch" to prevent working families from paying the onerous Alternative Minimum Tax (AMT). The delay also prevented the IRS from having its system ready to receive tax returns until Friday, Jan. 11. Still, as many as 13.5 million people who use four forms affected by the AMT legislation will have to wait until the IRS finishes reprogramming its computers.

Those forms are: Form 8862, Education Credits; Form 5695, Residential Energy Credits; Schedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers; Form 8396, Mortgage Interest Credit. February 11 is the target date for people using those forms to begin filing their taxes.

Tax credits can help pay part of the cost of raising a family, going to college, saving for retirement, making energy-saving home improvements and even getting daycare so parents can continue working. Below you will find some helpful hints to maximize your tax returns and possibly see a larger refund or additional tax credits to help you cope with the rising costs of living.

• Child Tax Credit: if you have a dependent child under 17, you probably qualify for this credit. This credit can be as much as $1,000 per eligible child and is in addition to the regular $3,400 exemption that can be claimed for each dependent.

• Credit for Child and Dependent Care Expenses: if you pay someone to care for your child so you can work or look for work, you probably qualify for this credit. And while this credit is commonly referred to as the Child Care Credit, it is also available if you pay someone to care for a spouse or dependent, regardless of age, who is unable to care for him- or herself. You will likely need to obtain the care provider’s social security number or taxpayer identification number when you fill out your tax return.

• Education Credits: the Hope Credit and Lifetime Learning Credit help parents and students pay for post-secondary education. Normally, tuition and required enrollment fees paid for your own and your dependents’ college education can be claimed on your tax returns but the Hope Credit targets the first two years of post-secondary school. Students must be enrolled at least part-time to qualify.

• Saver’s Credit: this credit helps low- and moderate-income workers save for retirement. Income limits for 2007 are $26,000 for singles and married couples filing separately, $39,000 for heads of households and $52,000 for joint filers. Also known as the Retirement Savings Contributions Credit, the Saver’s Credit is available in addition to any other tax savings that apply. IRA contributions can be made until April 15, 2008, and still qualify under this credit.

• Energy-Saving Tax Credits: this credit is available to offset the costs of energy-savings improvements made to your home. New energy-efficient improvements qualify, including insulation, exterior windows, exterior doors, water heaters, heat pumps, central air conditioners, furnaces and hot water heaters. The overall credit is limited to $500 and further dollar limits apply to specific components -- for example, $200 for windows. If you took the full $500 credit in 2006, you cannot claim the credit in 2007, even if you made energy-saving improvements.

Congressman John Boehner is the House Minority Leader. Boehner, a Republican, represents Ohio's Eighth Congressional District, which includes Miami, Butler, Preble, Darke, and Mercer Counties.