partial deduction

Under the committee bill, partial deductions would end this year.

Eight of the states allow a full or partial deduction for Federal income tax.

About 12 million will qualify for at least a partial deduction.

Working couples are no longer entitled to a partial deduction on one of their salaries.

These include a partial deduction for dividends received from other corporations, deductions related to organization costs, and certain other items.

Partial deductions are allowed for people with a bit more income, but they phase out with $10,000 more in income.

Partial deductions are also available for demonstrated energy savings with regard to one of three building systems-the building envelope, lighting or heating and cooling system.

Employers who pay $1,000 or less in wages to a single worker could be eligible for a partial deduction if they paid the employee's share of the tax.

But the interest payments on a 401(k) loan are not deductible at all (compared to a partial deduction for consumer loan interest on bank loans).

The I.R.S. rulings theoretically allow a partial deduction, but college athletic officials say the effect will be to cut contributions and force elimination of some non-revenue sports programs.

Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems.

Similar torments are in store for affluent taxpayers who claim partial deductions for contributions to retirement accounts, or expect to make withdrawals at retirement without being taxed twice for the privilege.

The legislation prior to 6 April 2003 and from 6 April 2006 is clear in disregarding partial deductions for tax when calculating earnings for Class 1A NICs.

Those who do not qualify for any deduction, or who qualify for only a partial deduction, can still contribute $2,000 to the I.R.A., where the money will grow and compound tax-free until withdrawn.

Other tax breaks that disappeared in mid-1992, but might yet be restored retroactively, are the exclusion from income of tuition paid by employers for education not related to work and the partial deduction of medical insurance costs for self-employed people.

That's one reason Senator Arlen Specter of Pennsylvania, another Republican Presidential campaigner, has proposed to retain at least a partial deduction for mortgages (only the interest on the first $100,000 would be deductible) and allow for charitable contributions up to $2,500.