Late Tax Changes Mean IRS Forms are Wrong
If you think you are the only one with tax deadlines, you are not. In a wickedly funny twist, the IRS also has them. Specifically, they have to get all the tax forms for the year printed up by November of the previous year. Since there are millions of tax forms that have to be produced, Congress makes an effort to make the relevant tax changes before forms have to be printed each November. Well, not this year. Before losing control of Congress, the Republicans went nuts. While this has caused a problem for the IRS, it has really caused a problem for you. Why? Well, the tax forms are wrong in certain areas. Here are some highlights.
1. Sales Tax Deduction - Under a 2004 law, you could deduct the total state sales tax you paid for the year instead of state income tax. This was a boon for those living in states with low or no income taxes such as Florida and Texas. The deduction was set to expire at the end of 2005. Last minute legislation by Congress extended it through 2007. The deduction is not, however, listed on the tax forms. To claim it, fill in the amount on line 5 of Schedule A and write "ST" next to the box.
2. Education Tuition and Fees Deduction - Another last minute bit of legislation. Congress is allowing up to a $4,000 deduction for these items. The tax forms are unclear on this, so you need to claim the deduction on line 35 of the 1040 form, the only form you can use. If you are claiming the deduction for tuition and fees, enter the amount and a "T" in the space to the left of the line. This is another deduction that can only be claimed on form 1040. Since it can be as high as $4,000, it is worth it.
3. Educator Expense Deduction - If you are an educator and used your own money to pay for classroom resources, you can get a deduction of up to $250. To claim it, you must use form 1040. The form is wrong, so you need to enter the amount on line 23 which reads "Archer MSA Deduction". Add an "E" if you are just claiming the educator expense deduction. If you are also claiming the Archer deduction, write in a "B"
People love to complain about how difficult it is to understand tax forms. In general, they are right. This year, however, the blame falls directly on Congress, not the IRS.
Related Tags: education, tax, fees, taxes, irs, deduction, forms, extension, sale tax, educator
Rick Chapo is with Nomad Journals - makers of travel journals to preserve your travel experiences. Great Gifts! Your Article Search Directory : Find in Articles
Recent articles in this category:
- Guide To Finding The Right Irs Debt Help Solution For Your Situation
Finding the right IRS debt help for your situation is crucial. Where you turn for assistance will de - The Basic Function Of Accounting
Accounting is a profession as old as the hills. It was a well known practice in the Roman, Ancient E - The Fundamental Concepts Of Accounting
The Federal Election was held in Australia on 21st of August 2010. During the rather boring election - Higher Earners Warned Over Tax Relief
Those that fall into the higher earners bracket have been warned that the government may impose furt - Procter & Gamble Wins R&d Credit Case Against The Irs
On June 25, 2010, the U.S. District Court in Procter & Gamble Co. and Subsidiaries (P&G) v. United S - 3 Ways To Settle Irs Tax Debt For Less
You can settle IRS tax debt for less if you know your options. There are several ways that you can s - Five Steps To Finding The Best Tax Lead Company For Your Business
The lead buying business has become an efficient and proven form of outsourcing marketing efforts to - Truly Effective International Tax Advice
A big concern for the public and corporate business units is to deal with the international tax at t - How To Avoid Making The Common Tax And Bookkeeping Mistakes?
Even though who consider themselves in the financial loop may fall prey to some of the most common t - How To Appeal Your Property Tax Bill
The responsible homeowner will want to do a thorough check of their property tax bill to ensure they
Most viewed articles in this category:
- New Tax Rules for the Poor
New tax rules for 2007 will bring about a good year for the poorest of tax-filers in Maryland. Tax-f - The Best LEGAL Tax Shelter in the World-- Your Home-Based Business!
Welcome to the best legal tax shelter in the world-- you home-based business! As long as you keep go - Income Tax Questions Answered Because of Radio - The World Is a Client of "Better Business"
Having hosted a financial radio program over several years has exposed me to many questions. Some of - IRS Alert: Tax Payers Need to be on the Look out for Fraud
Tax-Definition.org (http://www.tax-definition.org) is reporting on the second part of the tax - Lost Last Year's Tax Return?
It happens every year. Just when you get motivated to get rolling on your taxes, you realize you can - IRS Is Focusing on Schedule C Filers
In the last few tax years IRS has been paying more attention to taxpayers who file a schedule C. The - Figuring Out Your Tax Return Filing Status
When you are ready to plop down and start preparing that tax return, one of the first questions is y - 2007 Brings Tax Relief for N.Y. Residents
As of January 1, 2007, New York residents have been benefiting from a decrease in hospital bills, an - Estate Taxes
Federal estate tax applies to the transfer of property at death. The estate of a person who died is - Energy Efficient Home Tax Credits
Under the Energy Policy Act of 2005 you can get a tax credit if you installed energy efficient win