WASHINGTON — The Internal Revenue Service today reminded parents and students rushing to meet this year’s April 17 deadline to be sure and check out several college-related tax benefits before filing their 2011 returns.
Two tax credits and a tax deduction are available to taxpayers who paid tuition and other expenses for an eligible student during 2011. Because an eligible student can be the taxpayer, spouse or dependent, these benefits can, for example, help workers taking continuing education courses and people returning to school, as well as parents paying for their children’s college education. (more…)
The tax code provides a variety of tax incentives for families who are saving for, or already paying, higher education costs or are repaying student loans.
You may be able to claim a Hope and Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family (i.e., you, your spouse, or an eligible dependent) who are enrolled in eligible educational institutions. Different rules apply to each credit. If you claim a Hope Scholarship Credit for a particular student, none of that student’s expenses for that year may be applied toward the Lifetime Learning Credit. (more…)
A bipartisan group of lawmakers in the House of Representatives intend to introduce legislation that would allow individuals who make charitable contributions to victims of the earthquake in Haiti to claim an itemized charitable deduction on their 2009 tax return.
The legislation, sponsored by House Ways and Means Committee Chairman Charles Rangel (D-NY), Ranking Member Dave Camp (R-MI), Majority Whip James E. Clyburn (D-SC), and House Republican Whip Eric Cantor (R-VA), will allow taxpayers to claim donations to the rescue efforts in Haiti in 2009 instead of having to wait until next year to claim them on their 2010 tax returns.
Under the bill, for the purposes of Section 170 of the Internal Revenue Code a taxpayer may treat a cash contribution made for the relief of victims in areas affected by the earthquake in Haiti made after January 11, 2010, and before March 1, 2010, as if such contribution was made on December 31, 2009, and not in 2010. (more…)
US President Barack Obama has announced proposals for a new “Financial Crisis Responsibility Fee” to be imposed on the debt of the largest financial firms “until the American people are fully compensated for the extraordinary assistance they provided to Wall Street.”
Describing the USD700bn bank bail-out scheme, the Troubled Asset Relief Program (TARP), as “a distasteful but necessary thing to do,” Obama explained that despite many dire predictions, most of that money has been recouped, but that “most” is not enough.
“My commitment is to recover every single dime the American people are owed,” the President announced on January 14. “We want our money back, and we’re going to get it. And that’s why I’m proposing a Financial Crisis Responsibility Fee. If these companies are in good enough shape to afford massive bonuses, they are surely in good enough shape to afford paying back every penny to taxpayers.” (more…)
By Jeanne Sahadi, senior writerJanuary 17, 2010: 2:01 PM ET
NEW YORK (CNNMoney.com) — Everybody’s angry at banks. Federal deficits are wide and need addressing. And the president and Congress are starting to map out next year’s budget.
That means they’re talking taxes in Washington. The capital is awash in proposals for how to raise revenue and score political points.
There’s no guarantee all of them – or even some – will pass.
But they are an indication of the direction the White House and Congress may go as they finalize decisions for how to pay for health reform, reduce debt, support other government efforts and garner votes in a mid-term election year.
Tax banks to make taxpayers whole
President Obama on Thursday called on Congress to recoup any federal bailout money that hasn’t been repaid by imposing a fee on large banks, even if they themselves haven’t taken bailout money, or if they’ve repaid the bailout money they did take. (more…)