Slash your tax bill

New rules and a new President have changed the tax game. Use these strategies to save on your 2008 bill - and reap even bigger savings in the years to come.

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3. 2008 return: Take advantage of extra breaks
<b>2008 return</b>: Take advantage of extra breaks
As part of last fall's economic stimulus bill, Congress granted a stay of execution (through 2009) to some popular deductions that were due to expire for the 2008 tax year.

Extended:

The State Sales Tax Deduction
You choose: Either take this deduction or write off your state income tax on your federal return. The decision is obvious in places like Florida, New Hampshire and Texas, which don't have state income tax.

College Tuition Deduction
You can deduct up to $4,000 of your dependent kids' tuition bills and enrollment fees. Joint filers with modified adjusted gross income up to $160,000 are eligible to take some deduction.

NEXT: 2008 return: Fund your retirement
Last updated March 02 2009: 9:16 AM ET
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