Daylight Savings Time - Coming Sooner This Year!

SPRING FORWARD, FALL BACK...OR IS THAT SPRING BACK AND FALL FORWARD?

In any event, Daylight Saving Time (DST) will be springing a bit further this year. Back in 2005, Congress enacted the Energy Policy Act, which will extend DST by one month - beginning earlier in the spring and lasting later into the fall - beginning on March 11th and ending on November 4th.

Originally the bill was written to extend Daylight Saving by two months, but some very verbal opponents fought the change. Farmers say that DST has a negative impact on their livestock in general - as it is tough for them to adapt to the time change, and they therefore produce less milk, eggs, etc. Because DST is not followed uniformly around the world, airlines claim that it might mean many missed international flight connections. Additionally, TV and Cable stations argued that they will lose viewers and advertising revenue, simply due to less time spent in front of the television because of more time spent outdoors in daylight. So a compromise of one additional month of DST was reached - and Congress did retain the right to revert back to the old dates if the change proves to be widely unpopular, or if the energy savings aren't significant.

Why the change?

After making the adjustment to getting up an hour early, Americans overwhelmingly like Daylight Saving Time. There is simply more sunlight in the evenings to enjoy the outdoors and get things done. Additionally, there may be emotional benefits, as we typically feel better with more daylight. Plus, increased hours of daylight saves energy on a national scale. Less electricity is needed, as fewer lights are turned on as early in the evening...and with energy costs so high, even a small amount of savings is very welcome.

And brighter is safer - studies have shown that the DST shift reduces traffic accidents. An increase in accidents in the dark mornings is more than offset by the evening decrease in accidents, due to the increased visibility gained with more sunlight. Halloween will be much safer too - child pedestrian deaths are four times higher on Halloween than any other night of the year. Now, young trick-or-treaters are able to spend an extra hour out getting treats in the light. Candy manufacturers are happy too, as they've lobbied for years to have DST extended through Halloween.

A study by the US Law Enforcement Admin also determined that crime is consistently lower during DST, with violent crimes down as much as 10 - 13%. For many crimes, like mugging, darkness is a factor - so more light in the evening hours reduces these types of crimes.

And throughout its long history, Daylight Saving Time has had a remarkable and sometimes unexpected impact.

A man was actually able to avoid the draft for the Vietnam War using a Daylight Saving Time loophole. When he was born, it was just after midnight, DST. When he was drafted, he successfully argued that in his home state of Delaware, standard time - not DST - was the official time for recording births. So he was technically born on the previous date - which had a much higher draft lottery number - and he was able to avoid being drafted.

In September 1999, the West Bank was on Daylight Saving Time, while Israel had switched back to standard time. A group of West Bank terrorists prepared some timed bombs - but misunderstood the time change - and the bombs exploded early, killing the terrorists themselves, rather than the intended victims - two busloads of innocent citizens.

In the 1950's and 60's, each state and locality was permitted to choose start and end DST dates as they desired. During 1965, Minneapolis and St Paul - which are considered one metropolitan area - didn't agree on start dates, and for a period of time, these Twin Cities had a one hour time change between them. And on one Ohio to Virginia bus route, passengers technically had to change their watches seven times in 35 miles!

To keep to their published timetables, Amtrak trains cannot leave a station before the scheduled time. So when the clocks "fall back" in the fall, all trains that are running on time actually stop at 2:00am - the official time of DST change - and wait one hour before resuming their routes. In the spring, the routes instantaneously become one hour behind schedule, but they just keep going and do their best to make up the time.

So Daylight Saving Time sure can have some unexpected impact - and we'll all have to be ready early this year.

In particular, be sure to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and digital clock in your car automatically updating, the recent change of dates for daylight saving time may require that these devices be manually changed, as they now may not be ready to update to the correct time on the correct date!

Tax Time is Here...

...and although most people look forward to their annual visit to their tax professional about as much as a dental exam, this year just might bring a few pleasant surprises. On December 20, President Bush signed the Tax Relief and Health Care Act of 2006. And some of the new changes just might help you.

You now have an option to deduct either state and local INCOME taxes - or state and local SALES taxes, whichever is larger. If you saved all your receipts throughout the year, you can add up the total amount of sales taxes you paid and claim that amount. But let's be realistic...very few of us actually save all our receipts - so instead, you can take the easy road, and simply click on this link: Sales Tax Deduction Calculator

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If you, your spouse, or your children attend any level of college in 2006 or 2007, a hefty deduction of up to $4,000 may apply! This deduction can only be used if it provides more benefit than the Hope or Lifetime Learning Credits, which take into account your college expenses and your Adjusted Gross Income. But it applies even if you are using student loans to pay for your tuition. Definitely worth a closer look - and for more information on what you might qualify for, hit this link: Hope or Lifetime Learning Credit Info.

Many teachers pay for classroom supplies from their own personal funds - but can now deduct $250 of the expense. And better yet, if the expenses exceed the $250 amount, there can be other benefits available by itemizing the supply deductions. Link here to learn more: Educator Expense Adjustment. If you aren't a teacher yourself - being aware of how much is paid out of pocket by teachers - it may be a nice idea to ask your local school or your child's teacher if they need any supplies donated to their classrooms.

If you feel any of the above items might apply to you, be sure to gather the additional documentation, and take the time to ask your accountant if you can benefit from these specific changes. And if you need the referral of a qualified tax professional, I'd be happy to provide a contact. Asking just a few simple questions could give you a well-deserved break!