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Four Tax Deductions To Save Your Money

By Eugene Peterson

Because of some last minute actions by Congress – unless you read this column – you may not be aware of four of the tax deduction opportunities listed below.
1. Sales taxes or Income taxes – Because of last-minute action by Congress, if you itemize deductions you can still deduct either state and local sales taxes or income taxes on your 2006 returns
2. Charitable gifts – Almost anything you donate to a charity is deductible, even if only allowed at fair market value, and not what you paid for the item.  The latest IRS rule now requires: a receipt for cash donations of more than $250, and an appraisal for non-cash contributions valued at more than $5,000; and copies of checks and receipts for all donated items.
3. Work related costs – Expenses paid but not reimbursed qualify for the deduction if they add up to at least two percent of your personal adjusted gross income. Here’s a sample of items that qualify: professional dues; legal fees related to your job; professional books and magazines; tools and supplies used in your work; required work clothes and uniforms, but only if they aren’t suitable for personal use; and travel, transportation, entertainment and gift expenses related to your work.
4. Study and Education – Another deduction authorized by Congress at the end of the year allows a $4,000 deduction for higher education expenses, depending upon your adjusted gross income.