Tax Savings for Canadians

Average Canadian taxpayer will see a reduction of $223 in 2007, a savings that will rise to an average of $272 in 2008.

"Due to retroactive tax changes announced in the fall, coupled with changes that take effect in the new year, almost all taxpaying Canadians will pay the tax man less in 2007 and 2008," said John Williamson, Canadian Taxpayers Federation federal director.

Families will save even more on average thanks to a new child credit worth $300 per child and a higher spousal exemption, which were also enacted for the '07 tax year, the organization added.

And that doesn't include the savings in 2008 from the one-point reduction in the GST, which will save the typical Canadian family anywhere from $150 to $200 a year.

Staff from YY Consulting Tax Division want to thank our friends, clients and blog readers who have supported and contributed to our success in Year 2007! Happy new year, everyone!

AMT Patch to Delay Tax Filling For Some Americans

The IRS expects to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law. The IRS has targeted Feb. 11, as the potential starting date.

Only Last week, the law makers approved a one-year repair, or "patch," of the AMT, which had threatened to increase taxes on about 20 million middle- and upper-middle-income households. It is a good news that they finally passed the patch, but it is so late that IRS has not enough to adjust their systems. However, probably only a portion of the people is expected to be affected since many people won't file in the first four weeks. A little bummer for those who are expecting a refund, though.

For overseas Americans, however, due to the weakened US dollar, you may pay more tax even though your local income stays the same. Please consult with their professional tax advisor regarding any recent changes in tax law that may have a bearing on the calculations of Alternate Minimum Tax.