The Internal Revenue Service reminds Tennessee taxpayers that the sales tax deduction may be a good way for filers who itemize deductions to reduce their taxable income.

�Since few Tennesseans are required to pay state income tax but we all pay sales taxes, anyone who itemizes deductions may benefit from taking the sales tax deduction,� said IRS spokesman Dan Boone.

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State won’t tax Iowans’ rebate checks

Veterans at the Iowa Veterans Home will be able to spend their special federal rebate checks any way they choose under a bill signed by Gov. Chet Culver today.

It will mean at least $300 each for the more than 700 veterans at the home in Marshalltown, if they file a tax return this year. Normally, residents who receive financial assistance have to report any income and apply it toward their room and board fees.

Any Iowans who have already filed their 2007 income tax return, or who file it between now and January 2009, will not have to pay state income taxes on the rebate checks they get from the federal government this spring under House File 2417.

�All right, it�s the law,� said Culver, who pointed out that the legislation passed both chambers of the Iowa Legislature unanimously.

Extra!, March 25

Just file a return with the IRS, which says it has more than $20 million in unclaimed refunds for Colorado taxpay- ers who had taxes with- held or made esti- mated pay- ments but did not file a federal income tax return for 2004.