The 13 Most Overlooked Tax Deductions - Kiplinger.com

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The 13 Most Overlooked Tax Deductions - Kiplinger.com: "three deductions that are all-too-easy to miss because they are invisible on the tax forms. Congress failed to okay them for 2006 returns until after the IRS sent the forms to the printer.

1. State sales taxes. As part of the last-minute tax package last December, Congress resurrected the chance for taxpayers to deduct state and local sales taxes. Although all taxpayers have a shot at this write-off, it makes sense primarily for those who live in states that do not impose an income tax. You must choose between deducting state income taxes or state sales taxes and, for most citizens of income-tax states, the income-tax deduction is a better deal. You won't find this break mentioned on the tax forms, but here's how to claim this deduction: Enter your write-off on line 5 of Schedule A and write 'ST' on the dotted line to the left of that line. IRS even has a calculator on its Web site to help you figure the deduction, which varies by your state and income level.

2. $250 educators' expenses. This break, too, lost its place on the tax forms because it expired at the end of 2005 and wasn't reinstated until the 2006 forms were set. Still, teachers and their aides can deduct up to $250 they spent in 2006 for books and classroom supplies. If you qualify, put your deduction on line 23 of the Form 1"