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TAX TIP: PROM TICKET CREDIT FOR IOWA

March 28, 2007

Today's filing season tip is Iowa-only. If you are lucky enough to have a teenager, you may qualify for one of the few prom-ticket tax credits known in the wild.

Iowa offers a "Tuition and Textbook Credit" of 25% of the first $1,000 paid per dependent for tuition and textbooks. These are defined loosely:

The cost of the following items are eligible for the credit:

* Books: books and other instructional materials used in teaching subjects legally and commonly taught in Iowa’s public elementary and secondary schools, including those needed for extracurricular activities

* Clothing: “non-street” costumes for a play or special clothing for a concert

* Driver’s Education: only if paid to the school

* Dues, Fees and Admissions: includes those paid for extracurricular activities such as activity fees; booster club dues; fees for track and cross-country; activity ticket or admission for high school athletic events; fees for a physical education event in school such as roller skating

* Materials: includes materials for extracurricular activities, such as sporting events, speech activities, musical or dramatic events, awards banquets, homecoming, prom, and other school-related social events

* Music: rental of musical instruments for school or band; music/instrument lessons at a school; sheet music used in a school; valve oil; cork grease; music books and reeds used in school bands or orchestras

* Shop class and mechanics class: cost of required basic materials

* Shoes: football, soccer and golf shoes; cleats for football shoes; track spike shoes

* Travel: non-travel fees for field trips if the trip is during school hours

* Tuition: the school must be accredited; amounts paid are not allowed if they relate to teaching of religious tenets or doctrines of worship

* Uniforms: band, hockey and football uniforms

You may be too old to go to the prom, but at least you can enjoy the tax credit for it. Take the credit on line 49 of the Iowa long form.

We are posting a tax tip each day for the rest of filing season. Collect them all here.

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