“I’m proud to be paying taxes in the United States. The only thing is - I could be just as proud for half the money.”   - The late Arthur Godfrey
 
If you are as rich as Godfrey was, you wouldn’t have felt sorry for his tax situation. But even if you aren’t rich, you may be proud to pay taxes, since they get our streets plowed, our drinking water flowing, our roads and bridges built, our children educated, our judges and juries paid, even our gas pumps regulated by the department of weights and measures. Our taxes pay for countless programs and services that keep things afloat in our communities.
 
On the other hand, it makes no sense to pay more in taxes than is required. Here are some general tax ideas that may help.

Filing requirements: If your income is low enough, you may not need to pay any federal or state income taxes. For 2008.
 
However, if you are self-employed, you must file if you had net earnings of $400 or more. There are special income levels for dependents, married filing separate and heads of household. Tax forms are at libraries and on the Internet at www.irs.gov.
 
Social Security might be taxable
 
Although most people don’t pay taxes on Social Security benefits, it’s wise to be aware of the rules. Generally, if you’re married filing jointly, incomes over $32,000 may lead to taxing of some of your Social Security. If you’re single, incomes over $25,000 could do so. Income is money from a pension, 401(k) or IRA. It also includes interest on investments or savings accounts, salaries, tax-free interest on municipal bonds, plus half of your total Social Security benefit. There’s a worksheet for figuring taxable Social Security in the 1040 booklet.
 
Medical deductions
 
If you itemize, you may be able to take a deduction for medical and dental expenses, so total up your payments for Part D, Medicare supplements, Medicare Part B premiums, out-of-pocket co-pays, co-insurance for items like durable medical equipment, eyeglasses, bridges and dentures and dental insurance. On your federal return, you can also include qualified long-term care premium payments up to these amounts:
 
Age 51 to 60: $1,150
 
Age 61 to 70: $3,080
 
Age 71 or over: $3,850
 
Medical expenses that exceed 7.5 percent of your Adjusted Gross Income can be deducted.
 
Minnesota Property Tax Refund
 
If you are a renter with 2008 household income of under $52,300 or a homeowner with income under $96,940, you can apply for the Minnesota property tax refund or rent credit by mid-August. (Homeowners usually don’t get a property tax report until March.) There’s also a special property tax refund for homeowners of any income if property taxes rose more than 12 percent and at least $100 since last year.
 
Free help available
 
Free help in filling in and filing tax forms is available in Minnesota for low- to moderate-income taxpayers at various locations, such as churches and senior centers around the state. For information on where to go, call United Way at 2-1-1 or 1-800/543-7709. Bring along copies of last year’s tax forms, your bank and investment statements, charitable donation receipts, pension and work income statements, and rental or property tax statements.