As we start marching towards April 15th, taxes are probably the last thing on your mind. Well, you need to start thinking about them. The good news is you have some new deductions and credits this year.

Every year, the government passes a variety of laws that impact the tax code. After a couple hundred years, this has resulted in a tax code that is so big and confusing, an entire industry has grown up around trying to interpret it. Ah, only in America!

While the tax code probably constitutes a crime against humanity, there is a silver lining. Every year, the governments tweaking results in new and interesting ways to cut your taxes. This is particularly true when we are about to have a presidential election. While we will have to wait a few years for that, the changes for the 2006 year still offer some nuggets.

Sales Tax Deduction Before being booted out of Congress, the Republican majority passed a few interesting laws. This occurred so late that the IRS is now scrambling to include the new info in the 2006 tax forms. One of the goodies is an extension of the sales tax deduction. Simply put, you can choose to deduct the total sales tax you paid in your state in 2006 instead of the income tax you paid. This is excellent news for people in certain states that do not collect income tax. If you live in Florida, Nevada and so on, you should claim your total sales tax to cut your tax bill.

Going Green Oil costs a bundle and the planet appears to be melting. The answer? Tax incentives. If you purchased approved energy-efficient appliances and such for your home during 2006, you can deduct up to 10 percent of the cost so long as the total doesnt exceed $500. Polar bears everywhere thank you for your act. Make sure to check up on your specific product as the deduction is lower for some things.

IRA Change If you are over 50, you get a break on your IRA contributions. The limit is increased to $5,000 for the 2006 fiscal year. For those of us under the age of 50, we get nothing.

401ks Regardless of how old you are, there is good news on the 401k retirement front. You can now stick away a whopping $15,000 for the calendar year 2006. Since contributions are pre-tax dollars, it makes sense to do so.

Charitable Contributions Government officials apparently are now shopping at AmVets and such. If you want to contribute items to a charity, it now has to be in good and usable condition if you want to claim a deduction. How the IRS is supposed to enforce this new law is a mystery to me and, I bet, most IRS agents. Sometimes, you really have to wonder about the politicians in Washington.

Well, this represents the key changes you should know about for you 2006 taxes. There are more, but I have a pounding headache from reading the code. Feel free to have a go at it yourself if you feel suicidal!

Richard A. Chapo is with BusinessTaxRecovery.com - providing information on tax deductions.

Tax Deductions for Your 2005 Hybrid Automobile
With the recent push by President Bush for alternative fuel strategies, much confusion has arisen regarding tax incentives for hybrid vehicles. This article clarifies the issue for you.Tax Deductions for Your 2005 Hybrid AutomobilePeople buy hybrid v...

Deductions For Salespeople
A discussion of tax deductions is great and all, but most people want to know about their specific situation. The tax deductions for salespeople are covered here.As a salesperson, it is likely that you spend a certain amount of your day traveling. W...

Itemized Deductions Limit Changes
Right off the bat, those of you who have never itemized, try as hard as you can to keep up with the information that is about to spew your direction. Itemized deductions can be a confusing subject to begin with. If you are looking into itemizing th...

Tax Deductions
Tax deductions signify the amount deducted from a persons gross income so as to reduce the taxable income. The basic standard deduction depends on the individuals tax return filing status. The taxpayer need not pay income tax on expenses termed tax d...

Tax Preparation: Maximize Your Refund
Online Tax Preparation makes it easy to do it yourself. With the simplified processes of online tax prep along with the information age of getting more info, you can actually file your income tax without a lot of pain and agony, but If you file your ...

Tax Deductions You Might Have Missed
As April 15th draws ever closer, many taxpayers are starting to actively hunt for tax deductions to lower their bill to Uncle Sam. Here are a few that many people miss out on.The real estate market has obviously been on steroids for much of this deca...

Small Business Tax Deductions - Top 5
With tax season just around the corner it is never too early to start thinking about available tax deductions. Small business tax deductions are important to ensuring that you are getting all the return that is possible. Some tax deductions for small...

Small Business Tax Deductions
Small business tax deductions are implemented by the government to encourage entrepreneurship and investment. A business owner can save large amounts of money through these small business tax deductions. Special small business tax deductions are gra...

Giving To Charities - Tax Deductions and Such
The tax code in the United States contains many provisions to promote certain behavior. One area of behavior is the promotion of giving to qualified charities.Giving To Charities Tax Deductions and SuchIn the rush to get tax returns prepared and fil...

Hybrid Vehicles and Tax Benefits
You have to love car dealers. With the passage of the Energy Policy Act of 2005, car dealers are screaming about the tax benefits of buying these vehicles. Heres the scoop.Deductions and CreditsThe Energy Policy Act of 2005 made a major modification ...