You could save money filing your income taxes thanks to legislation approved by Congress Monday.
Texas Senator Kay Bailey Hutchison has led the way to get a provision in the final version of the American Jobs Creation Act of 2004. If the bill is signed by the president, taxpayers living in states without a state income tax will have the option of deducting state and local sales taxes on their federal income tax returns.
The deduction would be temporary and will only apply to purchases made during 2004 and 2005. However, Hutchison is working to make the tax cut permanent. "It's going to make a significant difference for families to keep more of the money they earn to spend it as they wish." Hutchison said.
Hutchison estimates every Texas family could save at least $300. A family of four with an income of $58,000 would get about $900 in deductions.