WASHINGTON — There’s no question that our tax code causes a lot of confusion. But don’t let confusion or misinformation from others lead to an audit or cause you to miss out on a deduction.

I received a number of tax-related questions during an online chat, such as: “I’m confused about spousal IRAs and the age 50-plus catch-up provision.”

Well, a working spouse is allowed to make a contribution to a separate IRA for a spouse with little or no income if they file a joint return. The total contribution to both your IRA and the spousal IRA is limited by certain factors such as your taxable compensation, contributions to a traditional or Roth IRA and your age. For tax year 2006 you can contribute up to $4,000 to a spousal IRA. If your spouse is at least 50 you can contribute up to $5,000. This contribution limit also applies to the working spouse.

“My family moved to Maryland in 2006. We already had 529 plans for our kids, but now we find out that Maryland allows you to deduct contributions to a Maryland 529 plan. Should we (a) switch everything over to a Maryland plan to get the tax benefit, (b) keep on growing the other plan, or (c) just open a separate Maryland 529 plan?”

This is a perfect question to address a mistake many people make: You should never make an investment decision based solely on the tax implication.

In this case, yes, factor in the state tax deduction. For Maryland, the tax deduction is limited to $2,500 per tax year per account.

Before moving funds there are a number of factors to consider in addition to the tax benefit, says Joseph Hurley, founder and chief executive officer of www.savingforcollege.com, a Web site where you will find up-to-date information on 529 plans.

For instance, compare returns for the two state plans, keeping in mind that past performance is no guarantee of future returns. Compare investment options. Also take into account fees and expenses.

“Over some period of time the investment performance is going to be a bigger factor than a state tax deduction,” Hurley says.

For a comparison of state 529 plans, including fees, expenses and investment options, go to www.savingforcollege.com. Click on the link for “529 Plans” and then click on “Compare 529 Plans.” On the site you will also find a new fee table to compare expenses.

Finally, should you be fearful of filing electronically? One reader is.

“I’m very leery of e-filing my tax return because I just don’t want to give the government my IP (Internet Protocol) address, what with all the illegal surveillance that has been authorized by the current administration. Do you have any information that would allay my concern?”

When you file your federal tax return electronically, it doesn’t go directly to the IRS. It goes to an Intermediate Service Provider for processing, then to a transmitter who sends only your return information to the IRS, according to Dupree.

“The security of taxpayer accounts and personal information is a top priority for the IRS,” he said. “It is the responsibility of each authorized IRS e-file provider to have security systems in place to prevent unauthorized access to taxpayer accounts and personal information by third parties. Your IP address is not recorded or sent forward.”

Michelle Singletary is a personal finance columnist for The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071 and may be e-mailed at singletary@washpost.com