Make sure your tax prep software takes the end of the year tax bennies and extensions Congress passed December 20th. With the Tax Relief and Healthcare Act of 2006 you may be eligible for tax deductions you thought were on their way out or inapplicable.
Got a kid in college or attending college yourself? The Tuition and Fees deductions allow up to $4,000 based on income level. If your state and local income taxes are low but youíre a spender and your state and local sales taxes are not, consider deducting the sales tax over the income tax. But you have to document your shopping.
If you are a dedicated teacher who spends a lot of personal cash for your classroom, you can deduct up to $250.
IRS forms that have already been printed for the 2007 filing season donít take these items into account, so you may want to check out the tax preparation software market and make sure if you will benefit from the extensions to use them.