It's just January, but you can go ahead and file your tax returns. There are some new tax laws and a few benefits to filing early.
It's the start of a fresh new year, but you still have to complete your tax return for 2004. There are some new tax laws to be aware of. One of them concerns deductions for sales tax you paid in 2004.
Chris Carroll, H&R Block Manager, said, "You can either keep track of all your receipts or you can use a table that the IRS has created and take percentage based on your income."
So if you bought a large ticket item like a car in 2004, you can take the deduction for the tax on that car if you itemize your tax deductions.
The deadline for filing your taxes is of course April 15. However, there are significant advantages to filing your taxes early for Florida residents who may incur an intangibles tax.
Tony Fierro, H&R Block Advisor, said, "It concerns stocks, mutual funds and corporate bonds. Now, government bonds are not affected, but corporate bonds are if you purchase them through a broker."
And if you are accessed a tax on your income from intangibles like stocks, mutual funds and corporate bonds, the earlier you file in Florida the higher percentage of a discount you'll receive.
Tax experts say it's best to prepare your Florida intangibles tax at the same time as your federal income tax return.