Filing Your Taxes: Check for Tax Deductions Now!

Every year there are changes in the tax law that may mean the difference between getting a tax refund or owing the government. With just over a month left before income taxes come due, it's important that everyone take every deduction they are entitled to. How can you find out more about tax deductions?

The IRS has a list of 13 adjustments to the tax laws that affect individual filers on their 2008 returns on its website. The changes include child-related adjustments, such as child investment income, adoption benefits and additional child tax credits, as well as the new "Recovery Rebate Credit" that is available to those who did not receive an economic stimulus payment last year (or received a payment that was less than the maximum that they could have received). Check out the full list as you file your return.

You should also know that among the changes to tax law is an increase in the penalty for not filing a return. What did you expect when the nation is running trillion-dollar deficits? It's just an incentive from Uncle Sam to get you to file prior to the April 15 deadline.

You should take advantage of the helpful information for filers online.

Bankrate.com and Kiplinger's both have an array of tax tips, calculators and other resources to help filers cope with their 2008 returns and plan for tax changes in 2009. Kiplinger's Tax Center offers a "Tax Toolkit for the Self-employed" which may come in handy for the thousands of people who became consultants after losing jobs last year. Bankrate features detailed information and calculators to help filers deal with their state tax liabilities.

About.com has a tax planning channel that also provides information on the changes in the tax code for 2008 and 2009. And all of the mentioned websites have blog sections that address tax questions from current filers.

Make use of the information while you still have time...

Top Tax-Friendly Cities

These cities came out on top (er, at the bottom, really) of the 2007-2008 District of Columbia Tax Rates and Tax Burdens Survey for the largest city in each state, plus D.C.

Tax rankings are based on 2007 tax return computations for a two-income couple earning $75,000 with one school age child. The real property tax is a function of housing values, real estate tax rates, assessment levels, homeowner exemptions and credits. The auto tax figure assumes the couple owns two cars and is based on the estimated registration fees, state and local gasoline taxes, and personal property taxes, if any.

Corbis / AOL

No. 1 Tax-Friendly City

Anchorage, Alaska

Income tax: $0
Property tax: $2,572
Sales tax: $0
Auto tax: $165

STATE & LOCAL TAX BURDEN: 3.6%
(National median tax burden: 8.5%)

Al Grillo, AP

No. 2 Tax-Friendly City

Manchester, New Hampshire

Income tax: $0
Property tax: $2,349
Sales tax: $0
Auto tax: $493

STATE & LOCAL TAX BURDEN: 3.8%

Manchester Chamber of Commerce

No. 3 Tax-Friendly City

Cheyenne, Wyoming

Income tax: $0
Property tax: $1,326
Sales tax: $1,512
Auto tax: $665

STATE & LOCAL TAX BURDEN: 4.7%

jupiterimages

No. 4 Tax-Friendly City

Seattle, Washington

Income tax: $0
Property tax: $1,698
Sales tax: $1,561
Auto tax: $457

STATE & LOCAL TAX BURDEN: 5.0%

Elaine Thompson, AP

No. 5 Tax-Friendly City

Las Vegas, Nevada

Income tax: $0
Property tax: $2,251
Sales tax: $1,072
Auto tax: $486

STATE & LOCAL TAX BURDEN: 5.1%

PictureQuest

No. 6 Tax-Friendly City

Jacksonville, Florida

Income tax: $0
Property tax: $2,456
Sales tax: $1,284
Auto tax: $195

STATE & LOCAL TAX BURDEN: 5.2%

Detroit Free Press / MCT

No. 7 Tax-Friendly City

Sioux Falls, South Dakota

Income tax: $0
Property tax: $2,760
Sales tax: $1,518
Auto tax: $294

STATE & LOCAL TAX BURDEN: 6.1%

No. 8 Tax-Friendly City

Phoenix, Arizona

Income tax: $1,241
Property tax: $1,401
Sales tax: $1,849
Auto tax: $588

STATE & LOCAL TAX BURDEN: 6.8%

No. 9 Tax-Friendly City

Billings, Montana

Income tax: $2,559
Property tax: $1,865
Sales tax: $0
Auto tax: $689

STATE & LOCAL TAX BURDEN: 6.8%

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