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