In this section:
1. What are the benefits to e-filing our tax return?
2. What are the standard mileage rates for 2005 and 2006?
3. What credits are available for higher education?
1. What are the benefits to e-filing our tax return?
It is the most convenient way to file since the return is transmitted to the IRS by computer and does not require a paper copy to be mailed. E-filing also significantly reduces the chance for errors since all returns are validated prior to acceptance by the IRS and do not have to be keyed into the system by an IRS employee. All Federal returns are processed by the IRS within 48 hours of receipt, while State returns are typically processed in about five business days. Once transmitted, all e-file returns are officially acknowledged by the IRS as accepted or rejected. You no longer have to worry about the mail properly handling your return. Of course, if you are due a refund, the faster processing time allows the check to be deposited electronically into your bank account much faster than traditional filing methods. Even if you owe, you may have the IRS draft your bank account on April 15th, regardless of when you file your return prior to that date.
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2. What are the standard mileage rates for 2005 and 2006?
The standard mileage rate for business miles driven was 40.5 cents per mile in January - August 2005 and increased to 48.5 cents per mile in September - December 2005. The mileage rate dropped to 44.5 cents beginning January 2006. Charitable miles driven may be deducted using 14 cents per mile in both years. The deduction for medical miles driven changed from 15 cents per mile for January - August 2005 to 22 cents per mile in September - December 2005. Mileage for moving expenses also changed from 15 cents to 22 cents in 2005 just as the medical mile changes. Back to Top
3.What credits are available for higher education?
There are two education-related credits: the Hope scholarship credit and the lifetime learning credit. These credits may be claimed by individuals for tuition expenses incurred pursuing college or graduate degrees or vocational training. The Hope scholarship credit provides a maximum allowable credit of $1,500 per student for each of the first two years of post-secondary education. The lifetime learning credit allows a credit of 20% of qualified tuition expenses paid by the taxpayer for any year the Hope credit is not claimed. The Hope scholarship credit initially allows taxpayers a 100% credit for the first $1,000 of qualified tuition expenses and a 50% credit for the second $1,000 of qualified tuition paid. The lifetime learning credit is equal to 20% of the amount of tuition paid by the taxpayer and is available for the first $5,000 of tuition for tax years beginning before 2003 and for the first $10,000 thereafter.
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Professional: State of Colorado Tax Forms
www.state.co.us/99incforms.html IRS Tax Forms
www.irs.ustreas.gov/forms_pubs/index.html Greeley-Weld Chamber
www.greeleychamber.com City of Greeley
www.ci.greeley.co.us CPAmerica
www.cpaamerica.org Federal Tax Watch - CPAmerica
Federal Tax Watch Special Edition online
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 Quickbooks
www.quickbooks.com
 Peachtree
www.peachtree.com
Open Systems
www.osas.com
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