Earned Income Tax Credit (EITC) Information

How to Pay Zero Taxes by Jeff A. Schnepper

Fully updated to include all the latest tax law changes, How to Pay Zero Taxes outlines the easiest, most practical strategies you can use to lower your taxes this year, next year, and beyond. From converting personal expenses into business expenses to avoiding or surviving an IRS audit, Jeff Schnepper's guide comprehensively covers more deductions than any other tax book, all conveniently organized in six fast-access categories: exclusions, credits, “above-the-line” deductions, “below-the-line” deductions, traditional tax shelters, and supertax shelters.

Jeff A. Schnepper is the author of several books on finance and taxation, including How to Pay Zero Estate Taxes and all twenty-four previous editions of How to Pay Zero Taxes. He is a financial, tax, and legal advisor to the Transamerica sales force and runs a full-time accounting and legal practice in Cherry Hill, New Jersey. Mr. Schnepper is Microsoft's MSN MONEY tax expert, an economics editor for USA Today and is tax counsel for Haran, Watson & Company.

     

Earned Income Tax Credit (EITC) Information - Tax Credits

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Earned Income Tax Credit (EITC) Information * Tax Credits

Use Tax Credits To Help Finance Your College Education   
P. Nash

Students are always on the lookout for ways to help pay or offset the cost of their tuition.

There are various government grants and scholarships available to you if you qualify. But what if you don't qualify for these government programs? Don't loose hope there are still options available to you that can help offset those tuition bills.

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Did you know that tax credits are another way that Uncle Sam can help you finance your college education? Well it's true and it has come to my attention that there are many students, old and new alike, who are not taking advantage of these educational tax credits that they are entitled to. Specifically the tax credits are the Hope Tax Credit and the Lifetime Learning Tax Credit. These two tax credits will reduce the amount of Federal Income Tax that you would pay dollar for dollar, unlike tax deductions that are used to lower your taxable income. It's like someone saying to you "if you spend your money on college, I'll give it back to you." The tax credits are based on the amount of qualified educational expenses that students pay.


What are these qualified expenses? Qualified expenses are tuition and fees that are required to pay to an accredited college, university, or vocational school as a requirement for attendance. Fees that are not included are room & board, personal living and family expenses. Other expenses that may also qualify are expenses for books, supplies, student activity fees, and equipment if they are required to be paid to the school as a condition for enrollment.

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Who is eligible for these tax credits? Anyone can claim these tax credits; you can claim these credits for yourself, your spouse and anyone you can legally claim as a dependant on your tax return.


The Hope Tax Credit is worth up to a maximum of $1,500, depending on how much the qualified educational expenses are, 100% of the first $1000 and 50% of the next $1000. To be eligible for The Hope Tax Credit the student need to be enrolled at least half time (6 credits) in at least one semester and meet certain income requirements. The Hope Tax Credit is available for each and every student, on the same tax return enrolled in a qualifying college program. This credit can be taken for the first two years of post secondary education (undergraduate degree or vocational school) for each student. A family with three students with qualified expenses of $2,000 each on the same return equals a $4,500 reduction in the taxes you owe.


The Lifetime Learning Tax Credit works a little bit differently, the credit is based on 20% of the of the first $10,000 of educational expense up to a maximum credit is $2,000 per return not per student. This credit can be taken for any and all years that a studennt takes even just one class that will improve or aquire job skills (undergraduate, graduate and professional degree courses included). If you have qualified expenses of $2,000 then you get a tax credit of $400 (.20 X $2,000).


Consider this, these tax credits can bring down the tax that you owe on April 15th, and money that you don't have to pay in tax can be used to pay for the education you want and deserve. Other limitations are that both of these tax credits may not be used for the same student in the same year. Students that have been comvicted of a felony drug offense can not claim the Hope Tax Credit, but they can still take advantage of the Lifetime Learning Tax Credit.


This is just a breif overview of these tax credits that all students should know about and tahe advantage of. I reecomend that you do refer to IRS Publication 970
and IRS: Topics for Students
for further information or discuss these tax credits with your Tax Professional.



P Nash is currently a student in his final year in a Business Administration program. He blogs on different topics related to higher education. Visit his blog College Matters for more higher education information.


Copyright 2005 P. Nash

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Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
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Index of Articles about Taxes

What Other Authors say about Taxes

Need a Copy of Your Tax Return Information? by Richard A. Chapo

Taxpayers have two easy and convenient options for getting copies of their federal tax return information. Tax return transcripts and tax account transcripts -- by phone or by mail.A tax return transcript...

What Is An Inheritance Tax And When Is It Applied? by Gray Rollins

When an individual passes, on the federal government imposes an estate tax. This estate tax only applies to estate properties that are over one million fifty thousand dollars. The federal government is...

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Many small businesses complain when confronted with the expense of complying with the Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset...

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If you live in the state of California, chances are you have to file your state taxes forms every year. Very few people don't have to file – those who have no income or are too young are among them. If...

Income Taxes: What Do They Go? by Carl LaFresnaye

Remember the Boston Tea Party? In 1773, the king in England and his Parliment had just initiated the Tea Tax – and the settlers didn't accept it. Many of them dressed up as Indians, boarded a trade ship...

Tax Invoice by Max Plata

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How Will You Spend Your Tax Refund? by Carl LaFresnaye

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