“Kiddie Tax” Hiked through Age 18

Starting in 2006, kids age 14 through 18 with significant investment income will no longer benefit from having a tax bracket separate from their parents. In May, 2006, the U.S. Congress extended to age 18 the taxation of children’s investment incomes at their parent’s marginal tax rate. This only affects a child’s investment income which exceeds $1,700, however. Still, if a child received a gift of shares in Google, or Pixar, for instance, upon the initial public offering, that child may now be paying three times more federal tax on sale than if he or she had sold the stock in 2005. 
 
Hybrid Cars Save on Taxes, too

Fuel-efficient hybrid cars cost less to fill up and emit less carbon monoxide and other greenhouse gases than lower mileage vehicles.  Hybrid cars also can reduce your federal income tax.   The Energy Policy Act of 2005 replaced the “Clean-burning fuel” deduction with a tax credit which can reduce or even eliminate a taxpayer’s federal income tax.  The credit can be as high as $3,150, but certain limitations apply.  Only the first 60,000 hybrid vehicles of a manufacturer, Toyota, for instance, sold in the U.S. each year qualify for the credit.  After that, the credit drops by 50% or more. Before you buy your new hybrid vehicle, learn about the tax credit at:
http://www.irs.gov/newsroom/article/0,,id=157632,00.html and at
http://www.irs.gov/newsroom/article/0,,id=157557,00.html