Be careful if you are preparing your own tax return this year; there are several tax deductions, credits and other provisions that are NOT listed on the tax forms.
The Tax Relief and Health Care Act of 2006 was passed in December 2006, after the IRS completed and printed the tax forms for 2006. Fortunately, several tax provisions that were scheduled to expire were extended, and several new tax provisions were created by this tax act. Unfortunately, since the IRS had already printed the tax forms for 2006, these new and extended tax provisions are not included on the forms.
The provisions that will affect most taxpayers are the tuition and fees deduction, teacher-related expenses, and the deduction for sales taxes paid.
Most tax software will have updated information on these tax provisions, so you should use tax software or see a tax professional to have your taxes prepared this year. You should not attempt to prepare your return by hand this year, or you could miss a deduction/credit that was passed after the forms were printed.
For more details, see IRS Notice IR-2006-195, or visit the IRS website at www.irs.gov
Tags: income taxes, tax act, tax preparation