Just read this article - VERY interesting. Ah, and yet my entire education cost me a whopping $12k or so - books and all - phew. I have been looking at around $8k for grad school. So the figures in this article are a little shocking to me. But interesting all the same.

"In Tuition Game, Popularity Rises With Price"...

http://www.nytimes.com/2006/12/12/education/12tuition.html?r...

& summary of some new tax laws just enacted:

Tuition deduction.

The tax deduction for qualified higher education expenses is extended through 2007. The deduction allows taxpayers to deduct up to $4,000 (depending on their income) of higher education expenses in lieu of claiming the Hope or Lifetime Learning tax credits. The deduction is taken “above-the-line,” meaning that it may be claimed by all individual taxpayers regardless of whether they itemize their deductions.


State and local general sales taxes.

The tax break allowing individual taxpayers to elect to take an itemized deduction for state and local general sales taxes in lieu of the itemized deduction permitted for state and local income taxes is extended through 2007. Taxpayers have two options for determining deductible sales tax: (i) actual sales tax paid if receipts are maintained for IRS verification or (ii) approximate sales tax paid as estimated in tables provided by the Secretary of the Treasury plus sales tax on certain additional items (such as a boat or car) that may be added to the table amount.

**Just read an article that the changes were not made in time to hit the 2007 tax forms. Interesting. IRS is reprinting forms and revising publications - our tax dollars at work.**

Deduction for certain expenses of elementary and secondary school teachers.

The tax break permitting elementary and secondary school teachers and certain other school professionals to deduct up to $250 of out-of-pocket costs incurred to purchase books, supplies and other classroom equipment is extended through 2007. The deduction is available to all individual taxpayers regardless of whether they itemize their deductions.

**that will solve our teachers problems...**

Tax credit for first-time homebuyers in the District of Columbia.

The tax break allowing first-time homebuyers in D.C. to claim a tax credit of up to $5,000 on the purchase price of the home is extended through 2007.

**I had a client get this a couple of years back. Pretty sweet. housing is more insane there than around here - which says a lot.**

Premiums for mortgage insurance.

A new itemized deduction for the cost of premiums for mortgage insurance on a qualified personal residence is established. The deduction is phased-out ratably by 10% for each $1,000 by which the taxpayer's adjusted gross income exceeds $100,000. The new deduction applies for 2007 only.