Below are some more tax tips and breaks to look out for when compiling your 2006 tax return for the IRS.
- You can deduct your state and local sales taxes instead of your state and local income taxes.
The IRS has estimates of your sales taxes, but if you purchased big ticket item you had better find the receipt.
Giving clothes to Goodwill or donating your old car used to be a great deduction. Now the cost basis for the car will not be the Blue Book Value, but what the charity sold the car for. Plus you can’t count old ratty clothes as a decduction–they say the most in a good used condition.
Many American donate money and gifts to charities so make sure you have all your donations documented.
- Go Green and get tax breaks
It is becoming more and more mainstream to buy a hybrid car or fix up your home for better energy efficiency. Look into your state tax breaks as well as the federal ones because they can add up to a huge deduction.
- Education Can be Rewarded
Tuition deduction can let you write off as much as $4k so make sure you compile all your records proving your education expenses.
Here’s some more on taxes.