2006 Education Tax Deductions You Should Know About
Our education system is a bit of a mess. There is a lot of debate as to why and the blame game is in full motion. Regardless, nobody seems to know how to really fix it. The problem is really two fold. Schools don't have enough money to do the job properly. On the other hand, people don't have much money to throw at the problem. The cost of sending a child to college these days is enough to reduce a grown man to tears. To say it is expensive is a minor understatement.
When faced with these types of problems, the federal government typically tries to take the financial approach. This approach is all about modifying behavior through taxes. If the government doesn't want you to do something, they tax the heck out of it. If they do want you to do something, they give you tax breaks. Here is the government's approach this year when it comes to education, at least the new things it is offering that can help you when filing your 2006 taxes.
Tuition and Fees Deduction - If you are paying for your kids to go to school, there is some good news on the tax front. You can deduct up to $4,000 for the tuition and fees you pay. The rules are complex. There are also caps on the deduction based on your income levels. Make sure to run the deduction by your accountant to find out if you can claim it and for how much.
Educator Expense Deduction - If you are a teacher or educator, the government hasn't forgotten you. It hasn't exactly helped you a lot, but at least it has done something. If you buy supplies for teaching your students, you can claim a deduction for them. That is the good news. The bad news is it is capped at $250. To claim the deduction, you need receipts. You had to work 900 hours during 2006 as a teacher, instructor, counselor, aid or principal. Importantly, this deduction was extended at the last moment, so instructions for claiming it are not on the 1040 forms. Visit the IRS site to find out how to get the deduction.
The old saying is any tax break is a good tax break. If you have education related expenses, the above should help you at least a bit with your tax bill for 2006.
Related Tags: government, tax, fees, taxes, expense, 2006, tuition, deduction, educater
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on tax deductions.
Your Article Search Directory : Find in ArticlesRecent 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 - 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 - 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 - 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 - 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 - 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 - 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 - Energy Efficient Home Tax Credits
Under the Energy Policy Act of 2005 you can get a tax credit if you installed energy efficient win - Taxes: How To Dramatically Reduce Your Taxes With One Simple Step
How to Make It, Keep It, Protect It. Did you know the federal government may keep up to 65.9% of eve