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TAX TIPS
An Extra Tax Deduction
by Kevin McCormally

A key to income tax savings at this point is not making mistakes that cost you money. One all-too-easy goof is to under-report the amount of state income taxes you paid last year.

Sure, the amount withheld from your paychecks for your state's revenuers should be shown on your W-2 form. If you paid estimated state taxes during the year -- on investment or business income, say -- evidence of those payments should be in your records.

But, did you have to send in a check for extra taxes owed when you filed your 2002 state tax return last spring?

If so, remember to add that amount to the state income taxes you deduct on Schedule A as you itemize your deductions. Forgetting to do so will cost you money ... and that's the kind of mistake auditors never seem to notice.