By month’s end, most Iowans should have their tax information from their employers and they can dig into the annual chore of filing their tax returns. Internal Revenue Service spokesman Christopher Miller says the agency expects more Iowans to file those returns electronically than ever before.
Miller says the IRS is expecting one-point-four million individual returns from Iowans for the 2006 tax year with some 982-thousand of those filed electronically. That’s about 72-percent e-filing, one of the highest rates in the nation. One change this year, Miller says Iowans need to leave a so-called "paper trail" for their charitable contributions.
Miller says you’ll still be able to make charitable contributions to qualified organizations, like your church, but starting in 2007, you need to have bank receipt of some sort, either a canceled check or a statement from the organization, to show the contribution was made. There’s another change this year in how Iowans choose to take their refunds. For the first time, Miller says you’ll be able to have your direct deposit split if you want it sent to separate checking or savings accounts.
If you use traditional paper or e-file your returns, use direct deposit and then use the special line on the 10-40 form to send the checks either to your checking or savings account. Miller says there’s also a new 88-88 form which allows you to split the refunds between two or three different accounts. You can get the 88-88 form on the website "irs.gov" or at 800-Tax-Form.