HOME OFFICE A lot of taxpayers don't fully understand how this deduction works, and experts say it's susceptible to fudging.
Let us examine some examples: Such a deduction works with two variable ideas, "Leipzig" and "Dresden", and depends also on astronomical knowledge.
Here's how the tax deduction works: You make a contribution to a 501(c)(3) tax-exempt group sponsoring your research, which pays for project expenses, including scientific equipment and your own room, board and, sometimes, ground transport.
Representative Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, said the Romney proposal to cap deductions would work only in concert with allowing the top two income tax rates to revert to the level of Bill Clinton's presidency, 36 percent and 39.6 percent, up from the current 33 percent and 35 percent.
People would get deductions for working or living in such a zone, and employers could take payroll deductions.
In general, if you claim a business deduction for work-related education and drive your car to and from school, the amount you can deduct in 2005 is 40.5 cents a mile through Aug. 31, and 48.5 cents a mile through the end of the year.
Further, Department of Labor regulations state, "If the employee is ready, willing and able to work, deductions may not be made for time when work is not available".
On average, undergraduates got 52 percent of their financing in the form of grants, 39 percent as loans, and 9 percent as tax credits or deductions or Federal Work-Study funds.
