One of the most popular ways to save for college is with a Section 529 plan. These plans offer a great combination of flexibility and tax benefits. Until recently, the tax benefits were scheduled to expire after 2010. But this year’s Pension Protection Act made the benefits permanent, removing some concerns.

We all face one question at tax time: to itemize deductions or take the standard deduction? For 2006, the standard deduction is $10,300 for married couples and $5,150 for single filers. If you’re on the borderline, consider a “bunching” strategy.

Hurricanes, tornadoes, earthquakes, wildfires, floods, storms. Few parts of the country escape the risk of natural disaster. If you’re an unlucky victim, you may receive help from insurance and federal disaster aid. But the tax code also offers some relief. You may be able to take an itemized deduction for part of your loss. In tax terms, it’s a “casualty loss,” and it can also apply to events such as a car crash, a house fire, or theft. Here are the basics:

Don’t rule out saving for retirement just because your income is low. We all need to save as much as possible for our later years. And now Congress has extended a tax break that rewards your saving with a lower tax bill.

If you sell shares of stock, your house, or other items you own, you’ll probably have a capital gain or loss. Generally, that’s the difference between what you paid and what you receive. Most capital gains are taxable and some capital losses are deductible. But did you know that not all capital gains are taxed equally?

Did you reach age 70½ this year? If so, you may have a decision to make before year-end. That’s because if you have a traditional IRA, you must start taking required distributions each year once you reach that age. But a special rule allows you to postpone making your first withdrawal. That’s where the decision comes in.

Fall is a great time for a tax review, while there’s still time to make changes. Look at these five areas to see how your tax situation is shaping up for the year.

Did you know that you may qualify for an extra refund when you file your 2006 taxes? And if you qualify, you can claim the refund by filling out just one extra line on your 2006 tax return.

Last month Congress failed to pass a major tax bill that would have changed the rules on estate taxes. To encourage passage, the bill included a raise in the minimum wage and extension of a number of expired tax breaks for businesses and individuals. But in an election year, the bill proved too controversial and did not pass. So where does that leave estate taxes and your tax planning?

One number on your tax return has special importance. You’ll find it at the bottom of the first page. It’s called “adjusted gross income” or AGI for short. Why is it important? Because your AGI controls your qualification for numerous deductions and credits. It can even affect your eligibility for retirement plans.

You’ve filed your return, you’ve received your refund check, and you don’t want to think about last year’s taxes again. Oops! You discover you made a mistake on your return. You might have overlooked a big deduction, you might find a missing receipt, or come across a dividend check that you didn’t report. Don’t worry. You can correct the mistake by filing an amended return.

Do your children have savings accounts or other investments held in their own name? If so, the tax on those investments could change. That’s because of a change in recent tax legislation, which expanded the “kiddie tax” to cover children up to age 18. Previously it applied only up to age 14. And the change is retroactive to the beginning of 2006.

It’s not too early to plan your tax-free gift program for 2006. Each year, you can make gifts of up to $12,000 each to as many people as you want, free of any gift tax liability. Your spouse has a similar limit, so as a couple you can give up to $24,000 to each person each year.

Is your next auto purchase going to be a hybrid? If so, you might want to put your order in soon. That’s because the tax credit you’ll receive for buying a hybrid phases out after each manufacturer sells a certain number of vehicles. Based on recent sales figures, the tax credit for at least one popular model could be cut in half later this year.

If you’re wondering how best to save for your child’s future education costs, prepaid tuition plans just became a little more attractive. That’s because the Deficit Reduction Act, signed in February, removed one of the drawbacks of these plans.

Are wedding bells in your future this summer? If so, add tax updates to the long list of things to do. It's not very exciting, but you should at least take care of some paperwork to keep your tax situation in order.

Do you pay for child care so you can go to work? If so, you might be eligible for a tax credit based on the amount you pay. It’s called the "child and dependent care credit," and it doesn’t just apply to costs for child care. It can apply to the cost of caring for an elderly parent or a disabled spouse, among others.

Beginning this year, your young children can earn more investment income before the "kiddie tax" kicks in. The kiddie tax rule applies to the investment earnings of a child under age 14. It says that income above a certain threshold amount will be taxed at the parents' top marginal tax rate. The intent is to discourage "income shifting." This happens when parents try to reduce taxes by transferring investments to their young children or other family members who are in a lower tax bracket.

Last December, Congress established “GO zones” – short for Gulf Opportunity Zones. It was part of an effort to boost the economy of the Gulf Coast areas devastated by hurricanes Katrina, Rita, and Wilma.

It’s usually better to file your personal tax return earlier rather than later. You’ll get your hands on your refund sooner, you’ll have less time to misplace your tax records, and it’s one more job out of the way. But sometimes it’s just not possible to be ready by April 15 (April 17 this year because April 15 is a Saturday). And in those cases, the IRS just made it easier to obtain a six-month extension.

When you itemize deductions, it’s easy to remember the big three — mortgage interest, state and local taxes, and charitable contributions. You might also be able to deduct medical expenses, but only when they exceed 7.5% of your adjusted gross income (AGI). And if you’re unlucky enough to have casualty or theft losses, you can deduct those too.

Don’t forget you still have time to make a 2005 contribution to an IRA. If you didn’t reach the maximum for last year, you have until April 17 this year to make up the difference. It’s a great opportunity to boost your tax-advantaged retirement savings and possibly save on your 2005 taxes at the same time. Then you can make another contribution for 2006!

The tax breaks in last year’s Energy Bill weren’t just for consumers and big oil companies. A surprising variety of other businesses can benefit too.

Tax reporting just became a little simpler for some small business owners. Thanks to a recent change by the IRS, some businesses will now be able to file a single annual employment tax return instead of four quarterly reports.

"I can't itemize any more." It sounds like a refrain from a country music ballad. But it’s a statement made by more and more taxpayers every year. In fact the IRS estimates that nearly two out of three filers now take the standard deduction. Part of the reason is that the amount of the standard deduction has increased in recent years. It increases each year to keep pace with inflation. Also, in 2003 the standard deduction for married filers increased sharply to help reduce the marriage penalty.

Expect a number of tax changes for 2006. You’ll have the chance to claim new tax credits, but some old deductions have disappeared. There are also the usual inflation adjustments in retirement contributions, tax brackets, and other amounts.