Highlights for 2006

Things did not change a lot this year. Congress only met for just a few days out of the year and spent most of those posturing over issues to get themselves re-elected. The only really important tax bill was the pension bill, which increased the amounts that could be contributed to retirement plans. They did sneak one little itty bitty extra thing in though. You will need to bring statements or checks to prove your contributions, when you have your return prepared. I can't just use a total anymore. This pretty much eliminates the leeway to deduct those contributions dropped into the Salvation Army kettles and etc. Of course, one is left wondering what exactly that has to do with Pension Reform.

The government also decided that the Spanish American war is paid for. So you are entitled to a refund of your telephone tax. You can either take a standard amount or bring along the bills for the last five years and add it all up.

They finally passed an extension of the most popular Bush tax cuts, educator deduction, tuition deduction, etc. Only they did it after the IRS printed the forms. So there is no obvious place to put these, and they just have to be entered in various places on the forms and noted. If you do your own be sure to check the IRS website for up to date instructions and to find out exactly which items are still deductible.