| Thanks to a last minute effort by Congress in | | | | 'Domestic production activities,' they must also write |
| December, President Bush extended the Tuition and | | | | in a 'B' and "attach a breakdown showing the |
| Fees Deduction for one more year. However, while | | | | amounts claimed for each deduction. |
| the opportunity has been viewed as a yearlong | | | | According to an IRS spokesman, Publication 600, |
| Christmas present for some of the 4.7 million families | | | | which explains in detail how to take the Sales Tax |
| with students in college, for many - all that glitter | | | | Deduction, will be mailed to the 3.5 million households |
| won't produce any gold! | | | | who took it last year. However, this document |
| As luck would have it, the Tax Relief and Health Care | | | | makes no mention of how to take the deduction for |
| Act of 2006, which revived the Tuition and Fees | | | | educator expenses (on Line 23 write in 'E'), and |
| Deduction, has three roadblocks obstructing | | | | noticeably absent is any reference to the subject in |
| taxpayers: | | | | question. |
| 1. For those who are eligible to take the deduction, | | | | As usual, misinformation is rampant as demonstrated |
| there is nothing on the 1040 indicating how or where | | | | by this quote from an AP story: "The IRS said the |
| to take it; | | | | deduction for tuition and fees can be claimed on |
| 2. Those unaware of it, and most families are, will | | | | Form 1040, line 35, 'Domestic production activities |
| miss the opportunity entirely; and | | | | deduction,' by entering 'T' on the dotted line to the |
| 3. Hundreds of thousands of taxpayers who | | | | left of that line." |
| previously took or will take the deduction would save | | | | Regrettably, there are no dotted lines for Line 35 - |
| substantially more by taking an Education Credit | | | | they're on Line 34 and Line 36! And with 4.7 million |
| instead! | | | | families affected, there is no way to guarantee that |
| For a taxpayer to actually take the deduction, they | | | | everyone who is entitled to a deduction will actually |
| must physically write in a 'T' on Line 35 of the 1040, | | | | receive it. |
| and if they are also claiming a deduction for | | | | |