May 11, 2006:
Congress Reaches an Agreement on Tax Increase Prevention and Reconciliation Act of 2005
Congress Restores Popular Tax Breaks, Public May Be Last To Know
December 14, 2006
Taxpayers can deduct their actual sales taxes if they kept good enough records of purchases. Another method: They can use IRS tables, plus sales taxes they paid on certain major purchases, such as a boat or a car. The deduction is particularly important to millions of taxpayers who itemize and live in Florida, Texas, Washington and other states that don't have a state income tax.
Educator Expenses
Under this provision, many teachers and other professionals in elementary and secondary schools may deduct as much as $250 a year of their out-of-pocket expenses for books, computer equipment and other classroom supplies. This is known as an "above-the-line" deduction because it goes on the federal tax form above the line for adjusted gross income. Thus, you can claim it even if you take the standard deduction. Congress revived this provision to reflect expenses paid or incurred in both 2006 and 2007.
Higher-education tuition and fees
Congress voted to revive a special deduction for qualified higher-education expenses through 2007. You don't have to itemize to be eligible for this deduction, but how much of a deduction you get, if any, depends on your income.
For more details, see the Web site of Congress's Joint Committee on Taxation, www.house.gov/jct
