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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Feb 25, 2001
Page
41
The Hope and Lifetime Learning credits help reduce college costs with different limits and rules. The Hope offers up to 1500 per student for freshman and sophomore years, while the Lifetime Credit reaches up to 1000 and stays available for any number of years. Credit amounts depend on qualified expenses, and limits include annual contributions to education IRAs and loan interest deductions.
If records are poor, tax software cannot recreate them. Electronic checkbook or bill pay programs require proper category classification. otherwise it is like a box of receipts. Relying on software instead of a human preparer increases effort and risk if the IRS questions the return. Do not itemize deductions to waste money.
Consumer advocates warn about refund anticipation loans from tax preparers as fees rise this year. These loans offer refunds in two days but lock in high charges and APRs. alternatives include e filing eSign direct deposit and early week filing to speed IRS refunds.
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