If you would like to have further
information on any of these articles, let us know. We would appreciate
receiving your comments and/or suggestions, anytime!
acarroll@pmcpa.com
1. Offset Education Costs
Education tax credits can help offset the
costs of higher education for yourself or a dependent. The Hope Credit
and the Lifetime Learning Credit are two educations credits available
which may benefit you. You may be able to subtract them in full from
your federal income tax, rather than just deducting from your taxable
income.
The Hope Credit
-Applies only for the first two years of
post-secondary education, such as college or vocational school. It does
not apply to graduate and professional-level programs.
-It can be worth up to $1,500 per
eligible student, per year.
-You're allowed 100% of the first $1,000
of qualified tuition and related fees paid during the tax year, plus 50%
of the next $1,000.
-Each student must be enrolled at least
half-time for at least one academic period which began during the year.
The Lifetime Learning Credit
-Applies to undergraduate, graduate and
professional degree courses, including instruction to acquire or improve
job skills.
-If you qualify, your credit equals 20%
of the first $10,000 of post-secondary tuition and fees you pay during
the year, for a maximum credit of $2,000 per tax return.
You cannot claim both the Hope and
Lifetime Learning Credits for the same student in the same year.
To qualify for either credit, you must
pay post-secondary tuition and fees for yourself, your spouse or your
dependent. The credit may be claimed by the parent or the student, but
not by both. Students who are claimed as a dependent cannot claim the
credit.
These credits are phased out for Modified
Adjusted Gross Income over $43,000 ($87,000 for married filing jointly)
and eliminated completely for Modified AGI of $53,000 or more ($107,000
for married filing jointly). If the taxpayer is married, the credit may
be claimed only on a joint return.
For more information on these credits and
other tax advantaged ways to save on educating your children, please
call us.
2. Tech Tip Weekly:
Search For Hidden Or System Files In Windows XP
The Search companion in Windows XP searches for hidden and
system files differently than in earlier versions of Windows. This guide
describes how to search for hidden or system files in Windows XP.
Search for Hidden or System Files by default, the Search
companion does not search for hidden or system files. Because of this, you
may be unable to find files, even though they exist on the drive.
To search for hidden or system
files in Windows XP:
Click Start, click Search, click All files and folders, and then click
More advanced options.
Click to select the Search system folders and Search hidden files and
folders check boxes.
Tech Tip Courtesy of
www.freepctech.com
3.
Compliance Calendar
October 4
-Employers deposit Social Security, Medicare, and withheld income tax for
September 27, 28, and 29.
October 6
-Employers deposit Social Security, Medicare and withheld income tax for
September 30 and October 1, 2, and 3.
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