Tax Tips: Helpful Hints for Your 2005 Taxes

  Tax Breaks for Men and Women in Uniform Men and women serving in the military in Iraq or Afghanistan don't have to worry about the April 15 tax deadline. They don't have to file until at least six months after they leave the combat zone. For married service people, that extension applies to husbands and wives back home, too. Also, for enlisted men and women, 100 percent of the pay received while serving in a combat zone or while hospitalized for injuries is tax free, with a cap at about $6,300 per month.

National Guard and reserve members can now deduct some of their travel expenses for drills and meetings. If you have to travel more than 100 miles and stay over at least one night, you can write off the cost of food, lodging and transportation.

  Audit Trigger Myths The latest numbers show that, overall, about one out of every 150 tax returns gets audited, and fewer than one in 600 taxpayers actually has to sit down face to face with an auditor. Most audits are done by mail. The kinds of things that grab the IRS' attention are when the picture painted on a tax return seems odd compared to what other taxpayers report -- such as claiming that you gave half your income to charity or reporting that you use a new sport utility vehicle 100 percent for business but report only a tiny business income.

  Teen Retirement Planning For teenagers, starting an individual retirement account with the money you made flipping burgers or mowing lawns may be a good idea. You can even convince your parents to kick in by reminding them that by claiming you as a dependent, they save more than $750 in taxes -- if they're in the 25 percent bracket. If they give that money to you for an IRA, it will grow to nearly $90,000 by the time you retire in 50 years, assuming a 10 percent annual return.

  Getting Tax Breaks Without Itemizing You don't have to itemize to get tax breaks. In fact, 70 percent of taxpayers don't itemize deductions. But there are still many write-offs to be claimed by "non-itemizers." There is a $250 deduction for teachers and a $3,000 write-off for college tuition. You can deduct job-related moving expenses, interest paid on student loans and alimony you paid. And if you bought a hybrid car or contributed to a traditional IRA or health savings account, you can write these off.

  The Nearly Instant Refund There are a couple of extra lines on your tax form that can let you tell the IRS to send your refund directly into your bank account. All you have to do is write in your account number and the routing number of your bank -- they're written on the bottom of your checks, and the IRS instructions have an illustration to help make sure you get it right. The IRS likes direct deposit because it saves the government money, but what's in it for you? You'll get your money faster than if the government has to mail you a check, and an electronic deposit won't be lost in mail.