Tax Questions, Untangled

"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 http://www.savingforcollege.com. Click on the link for "529 Plans" and then click on "Compare 529 Plans." The site also has 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."

There you go. As Ralph Waldo Emerson said, knowledge can take fear out of the heart.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.