February 2008
Commonly missed breaks
State sales tax deduction. Itemizers can deduct either state and local sales tax or state income tax, whichever is greater. Residents of Alaska, Florida,
Nevada, South Dakota, Texas, Washington, and Wyoming, which have no income tax, stand to benefit the most.
Educator expense deduction. Teachers, administrators, and other professionals working with grades K through 12 can deduct up to $250 for out-of-pocket job expenses, even if they don't itemize.
Tuition and fees deduction. Itemizers can deduct up to $4,000 used toward college. To be eligible, modified adjusted gross income can't exceed $80,000, or $160,000 for joint filers. See form 8717.
Child tax credit. You may be eligible for up to $1,000 for every child under age 17. For joint filers the credit is reduced when modified adjusted gross income hits $110,000 ($75,000 for singles and heads of household). See Publication 972.
Educator expense deduction. Teachers, administrators, and other professionals working with grades K through 12 can deduct up to $250 for out-of-pocket job expenses, even if they don't itemize.
Tuition and fees deduction. Itemizers can deduct up to $4,000 used toward college. To be eligible, modified adjusted gross income can't exceed $80,000, or $160,000 for joint filers. See form 8717.
Child tax credit. You may be eligible for up to $1,000 for every child under age 17. For joint filers the credit is reduced when modified adjusted gross income hits $110,000 ($75,000 for singles and heads of household). See Publication 972.
