As the end of 2002 approaches, Iowa teachers, students and retirees could reap some financial rewards from changes in tax law that are now in effect. Des Moines C-P-A Jeff Strawhacker says one recent change targets education and educators specifically.There is a 250-dollar deduction for teachers’ classroom expenses. There’s also a three-thousand dollar deduction for higher education expenses which can apply to post-secondary qualified education expenses. Strawhacker says Iowa’s oldest residents can also take advantage of some new tax law changes. Retirees who are taking minimum distribution requirements out of I-R-As or qualified employer retirement plans, they can lower those payments due to new payout rules that took effect this year. While most people love getting big refund checks, Strawhacker that’s -not- something you should strive for, since it means you let the state or Uncle Sam take too large a chunk of your earnings. He says to review your state and federal withholding levels every year. A big refund check is a sign of poor planning on withholding levels. It can be adjusted so the person gets more take-home pay throughout the year and the state and/or federal governments aren’t getting so much money from every paycheck.
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