ic_on_three_pennies.jpg

With tax-day approaching for those living in the U.S.A., my thoughts sometimes wander and I think about all of the paperwork that I have to file. I have been reading about the stimulus package and wondering exactly what kind of hoops I would have to jump through to get my $600. Luckily the only thing that I need to do is to file my 2007 taxes to receive this small cash allowance.

Now for some more complicated tax preparation. Throughout my tax-paying career, I have always found that an itemized deduction (versus standard deduction) increased my tax return at the expense of an hour or two extra preparation time. This works especially well for students as they generally near the low end of the income spectrum. Another benefit for tax-paying students is the Hope and Lifetime Learning Credit which can sometimes reduce your adjusted gross income (what is taxable) quite favorably. Unlike the stimulus package, the required forms will include a 1040A (slightly longer than 1040EZ), a schedule A itemized deduction form, and a form 8863 for the Hope/Lifetime Credit. Now it is true that you don’t need to include proof of deductible spending with these forms, however, it is a good idea to have this paperwork on hand or easily accessible should the IRS contact you for clarification (something that has happened to me).

As a final crazy and illegal method to maximize your tax return, you could cash your check and obtain vast quantities of pennies. As of August 2006, the estimated production cost for a U.S. penny was actually 0.014USD. Since then, the prices of both copper and zinc have increased so the potential to make money has increased. This is not to say that the U.S. Mint has ignored these factors, a press release which followed by the above NY Times article states that there are already regulations in place to make melting of coins and export (certain quantities) illegal. I wonder if they also included a restriction on electrochemical stripping?

( Image is from Sci-Toys. )

 
del.icio.us | digg