This is the final tip on tax preparation from Tony. Thanks, Tony!
Tip Number Seven: Offsetting Education Expenses, If Qualified • American Opportunity Credit helps pay for college’s first four years. • Hope Credit helps pay for college’s first two years and allows a maximum annual credit of $2,500 per student, of which up to $1,000 may be a refund, if no taxes are owed. • Hope Credit deductions of $3,600 may be claimed for college in a Midwestern disaster area. • Lifetime Learning Credit (LLC) helps pay for undergraduate, graduate and professional degree courses – including job skills improvement. • LLC includes computer technology, Internet access and related services as legitimate expenses. • Students and parents may be able to deduct college costs up to $4,000 as an adjustment to income, reducing their income subject to tax. • The Tuition and Fees Deduction may be beneficial when not qualified for other tax credits.
Tony Navarro, UCLA, B.A, Economics, 1990: Investment Consultant since 1992; Tax Preparation since 1996 tax year; IRS Audit Representation; IRS-designated Enrolled Agent; Investment Advisor LPL; Notary Public; Bookkeeping Services. 12803 Venice Boulevard • Mar Vista, CA 90066 (310) 398-3231 • tony@taxplusla.com http://www.taxplusla.com
Tags: income tax prep, IRS
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