We want to keep you abreast of the latest tax law changes.  Here are just a few....

Education Credits
AOTC (American Opportunity Tax Credit) is a credit related to tuition paid to higher educational institutions. Phase outs applied for married individuals credits are not available if adjusted gross income exceeds $180,000 and for single individuals exceeds $90,000. Dependants can take the credit if either the parents or grandparents pay the tuition. Credit are presently $2,500 per student and can be 40% refundable.

Student Loan Interest
The maximum deduction for interest paid on qualified education is $2,500.

Individual Retirement Accounts
The Adjusted Gross Income phase out range for active retirement plan participants to contribute to a deductible IRA is $115,000 for joint filers and $69,000 for single taxpayers. Maximum contribution is currently $5,500 or $6,500 if over 49 years of age.

Estate and Gift Taxes
The unified estate and gift tax exemption rises  to $5,250,000 for 2013.  The $14,000 annual exclusion for gifts remains currently.

A tax professional should be contacted to determine if your specific circumstances permit these deductions.  Please contact us for assistance in identifying and implementing the best strategies for you.

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