| There is a general implicit agreement between | | | | next to the box. |
| Congress and the IRS regarding tax changes. | | | | 2. Education Tuition and Fees Deduction - Another last |
| Congress agrees to make all tax code changes | | | | minute bit of legislation. Congress is allowing up to a |
| before November, but broker the agreement this year. | | | | $4,000 deduction for these items. The tax forms are |
| If you think you are the only one with tax deadlines, | | | | unclear on this, so you need to claim the deduction on |
| you are not. In a wickedly funny twist, the IRS also has | | | | line 35 of the 1040 form, the only form you can use. If |
| them. Specifically, they have to get all the tax forms | | | | you are claiming the deduction for tuition and fees, |
| for the year printed up by November of the previous | | | | enter the amount and a "T" in the space to the left of |
| year. Since there are millions of tax forms that have to | | | | the line. This is another deduction that can only be |
| be produced, Congress makes an effort to make the | | | | claimed on form 1040. Since it can be as high as |
| relevant tax changes before forms have to be printed | | | | $4,000, it is worth it. |
| each November. Well, not this year. Before losing | | | | 3. Educator Expense Deduction - If you are an |
| control of Congress, the Republicans went nuts. While | | | | educator and used your own money to pay for |
| this has caused a problem for the IRS, it has really | | | | classroom resources, you can get a deduction of up |
| caused a problem for you. Why? Well, the tax forms | | | | to $250. To claim it, you must use form 1040. The form |
| are wrong in certain areas. Here are some highlights. | | | | is wrong, so you need to enter the amount on line 23 |
| 1. Sales Tax Deduction - Under a 2004 law, you could | | | | which reads "Archer MSA Deduction". Add an "E" if |
| deduct the total state sales tax you paid for the year | | | | you are just claiming the educator expense deduction. |
| instead of state income tax. This was a boon for | | | | If you are also claiming the Archer deduction, write in a |
| those living in states with low or no income taxes such | | | | "B" |
| as Florida and Texas. The deduction was set to | | | | People love to complain about how difficult it is to |
| expire at the end of 2005. Last minute legislation by | | | | understand tax forms. In general, they are right. This |
| Congress extended it through 2007. The deduction is | | | | year, however, the blame falls directly on Congress, |
| not, however, listed on the tax forms. To claim it, fill in | | | | not the IRS. |
| the amount on line 5 of Schedule A and write "ST" | | | | |