Tax Information
Although you just handed a sizable chunk of your hard-earned income to Uncle Sam this tax season, the
Internal Revenue Service will probably send a small portion back. Last year 76 percent of filers received a refund check
averaging $2,032. Tax cuts passed this year should make refunds even higher.
Here are some tax deductions that can save you big money:
State and local sales taxes. You can now deduct all the sales taxes you shelled out for that new car and everything else
you bought in 2004. But if you live in a state with income taxes, you'll have to choose between deducting those or sales
taxes.
Clean-fuel vehicles. Despite talk of a reduction, the deduction for 2004 and 2005 is being held at $2,000. So you can thank
your Prius, Honda Insight, Honda Civic Hybrid, or other qualified clean-burning vehicle for a year of big tax and gas savings.
Weight-loss programs. If you joined Weight Watchers or another group to lose weight because a doctor prescribed it to
treat obesity, you can deduct the fees as a medical expense.
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