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2006 Tax Credits And Deductions You Should Know About
By Richard A. Chapo
As April 15th draws every closer, it is time to start thinking about how you are going to reduce your tax bill. Here are a couple of ways most people miss out.

Every year, the IRS tries to alert people to new deductions and credits available to taxpayers. Some might argue the IRS doesn’t make much of an effort, but that is beside the point. In truth, it sends out news releases and so on. Here are some of the areas where you can save on your 2006 taxes that you might not know about.

Telephone Excise Tax Refund – For the last 108 years, the IRS has collected a long distance tax. Don’t remember paying it? Well, this is because your phone service was doing it as part of your bill. Much to the embarrassment of the IRS, the tax has been ruled illegal over and over by courts. The

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<P><FONT face=Verdana,Geneva,Arial,Helvetica,Sans-Serif><STRONG>Wi-Fi around Chicago..</STRONG></FONT></P> <P><FONT face=Verdana,Geneva,Arial,Helvetica,Sans-Serif><FONT size=2>The Daley Center between Clark and Dearborn is&nbsp;now (as of September 2003) a wi-fi hot zone. I have not personally connected there, but the word is </FONT><FONT size=2>that the signal around Daley Plaza and Block 37 is strong. Click <A href="http://www.xchicago.com/main/article.php?articleID=413">here</A> for more information. </FONT></FONT></P> <P><FONT size=2>If you are outside of downtown Chicago,the UPS stores (formerly Mailbox Etc.)&nbsp;will have wi-fi access (for a fee) in mid-September as will many McDonalds (for a fee). <A href="http://www.computerworld.com/mobiletopics/mobile/story/0,10801,80914,00.html">UPS story</A></FONT></P> <P><FONT size=2></FONT>&nbsp;</P>


IRS has finally given in. Does this mean you get a refund for the last 108 years? No. Instead, you can claim a $30 or $60 refund on your 1040. The box is line 71 on the 1040 form and line 42 on the 1040A and 1040EZ forms. Alternatively, you can go rifle through your phone bills and file form 8913.

State and Local Sales Tax Deduction – Mention of this deduction may bring on a sense of déjà vu. It has been around since 2004, but was set at the end of 2005. Fortunately, it has been renewed. If you itemize deductions, you can choose to deduct the total state and local sales tax instead of the state income tax. This is a windfall for people that made big purchases such as luxury cars or live in a state where income tax is not collected such as Florida.

Home Improvement Tax Credits – If you installed energy efficient products on your home in 2006, you can claim a nice tax credit. The products, such as windows, doors and appliances, have to be approved for the tax credit. The exact amount of the credit depends on the product, but can be as high as $500. While this may not sound like a lot, keep in mind tax credits are applied directly to the amount you owe the government one you figure out your taxes. This dollar for dollar reduction makes them much more valuable than a mere tax deduction.

As we head full steam into the tax season, most people start to worry about filing their taxes. If you keep the above credits and deductions in mind, it should prove to be less painful.

Article Source: http://www.Article-Warehouse.com

Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.




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Using This Years Taxes To Save On Next Years Taxes
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You just got done paying taxes or filing an extension and are grumpy. If you are smart, you will use this miserable event to save some cash for next year. Using This Years Taxes to Save On Read more...
New Procedure For Settling Tax Debts With The Irs
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The process of planning for the orderly administration and disposition of assets after the owner dies.