Publication 553: Highlights of 2004 Tax Changes; Introductory Material

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Introduction

Introduction

This publication highlights tax law changes that take effect in 2004, 2005, and later years. The chapters are divided into sections based on when the changes take effect.

Changes covered in this publication include the following.

A uniform definition of child for tax purposes.
New state and local general sales tax deduction.
Extension of the deduction for certain expenses of educators.
New deduction for costs involving discrimination suits.
Changes to the child tax credit and earned income credit for individuals receiving combat pay.
Extension of certain business-related tax credits, including the research credit and the welfare-to-work credit.

Publication 17, Your Federal Income Tax, is a comprehensive guide for preparing your 2004 income tax return. The tax tables reproduced in the publication as drafts are final and may be used to compute your 2004 tax. See chapter 8 for information on ordering Publication 17 and other forms and publications.

Adjusting your withholding or estimated tax payments for 2005. If your tax for 2005 will be more or less than your 2004 tax, you may need to adjust your withholding or estimated tax payments accordingly. If your tax will decrease, you can get the benefit of lower taxes throughout the year. If you will owe more tax, you can avoid a penalty when you file your tax return.

See the following table for forms and publications that will help you adjust your withholding or estimated tax payments. See chapter 8 for information on ordering forms and publications.

To adjust your...	Get Form...	And Publication...
Withholding	W-4, Employee's Withholding Allowance Certificate	919, How Do I Adjust My Tax Withholding?
Estimated tax payments	1040-ES, Estimated Tax for Individuals	505, Tax Withholding and Estimated Tax

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

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Internal Revenue Service
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