Little Tax Breaks Everywhere
(MONEY Magazine) – • WRITE OFF THE NANNY If you work and pay for a dependent's care, you may be able to take a credit for the amount you spend on it above what you get back from your company's FSA. The credit is capped at $3,000 for one dependent, $6,000 for more. (FORM 1040, LINE 48) • GET HELP WITH TUITION You and your spouse may deduct up to $4,000 in qualified higher education expenses if your joint adjusted gross income is $130,000 or less, or up to $2,000 if it's $160,000 or less. (FORM 1040, LINE 35) • PICK YOUR STATE TAX Don't forget, you have the option to either deduct the state and local income tax you paid or the sales tax you paid, whichever is higher. No receipts? Use the sales tax tables in IRS Publication 600. (SCHEDULE A, LINE 5) • GET BACK YOUR PHONE TAX Thanks to the recent repeal of a 3% long-distance telephone excise tax, you can take a onetime credit covering what you paid from March 1, 2003 to July 31, 2006. The standard amount: $30 to $60, based on exemptions. (FORM 1040, LINE 71 ) • DEDUCT THIS MAGAZINE! Among the miscellaneous deductions you may be able to take: job-search expenses; investment fees; and unreimbursed work expenses such as subscriptions for career-related publications. (SCHEDULE A) Auditproof your tax return 21 "My credit report shows I owe double!" by Ellen McGirt 26 Cutting loose from your e-mail by Jean Chatzky 28 |
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