Newspaper Page Text
6A
JUNE 24. 1999
Tax-favored ways to pay for college
Paying for college might be a
little easier now for middle-in
come families, thanks to a num
ber of changes to the tax law,
reports the Georgia Society of
CPAs. Two education tax credits,
the Education IRA and a break on
student loan interest should help
make post-secondary education
more affordable for millions of
Americans.
TheHope Scholarship credit
and the Lifetime Learning
credit
The Hope Scholarship credit
provides a federal tax credit for
the first SI,OOO, and up to SSOO of
the next SI,OOO, of qualified tu
ition and related expenses in
curred in the first two years of
post-secondary education. Quali
fied expenses include tuition and
course fees, but not books, board,
meals, transportation, or other
fees.
To qualify for the credit, the
student must attend an eligible
educational institution at least
“half-time” in pursuit of a degree.
A family is entitled to claim a
Hope tax credit for each student
whoisenrolledin aqualified higher
education program. But good be
havior is a must: the Hope credit
is not allowed for students who
are convicted of federal or state
felony possession of a controlled
substance.
In addition to the Hope Scholar
ship credit, a Lifetime Learning
credit is available for education
With FHA's new
h ig her loan limits,
you can buy your
dream home.
How’s that for a housewarming gift?
¥ ,!!?}",';fim\ Since 1934 we've helped over 26 million Americans get into new
N 4 @ homes. And starting this year, HUD can help you get a home loan for
\ \& g up to $208,800. Be sure to check with your lender to find out what
x\, %o ) the FHAinsured loan limits are in your area. We can also help you
LIl with any questions you might have. Justcall 1-800.HUDSFHA and ask
. for our free 100 Questions and Answers brochure. I¥'ll tell you how
to get an FHA loan for as lisle as 3% down. How to choose the right
lender. How to prepare yourself for the homebuying process. A
And much more. In fact, if you're looking for a home, it's all u
the information you need. .
HUD and FHA arcon your side.
0 2
R R 1 . 800-HUDS-FHA
furnished after June 30, 1998.
The Lifetime Learning credit cov
ersundergraduate education and
all the years of graduate and pro
fessional studies. This credit is
also available — even for part
time study — to adults who want
to upgrade their job skills, ac
quire new ones, or pursue an
other course of study. The credit
is calculated at 20 percent of up to
$5,000 of qualified tuition and
fees for a maximum credit of
SI,OOO per year.
The SI,OOO covers all of a
family’s students collectively.
Youdon’tget a separate credit for
each student. There is no limit,
however, on the number of years
a taxpayer may claim the Life
time Learning credit. A family
can claim the Hope tax credit for
some members of the family and
the Lifetime Learning credit for
others who qualify in the same
year.
Both the Hope Scholarship and
the Lifetime Learning credits are
phased out for joint filers who
have between SBO,OOO and
SIOO,OOO of adjusted grossincome
(AGI), and for single filers whose
AGI is between $40,000 and
$50,000. To take advantage of
the Hope and/or Lifetime Learn
ing credits, you must complete
and submit IRS Form 8863 with
your federal tax return.
Education IRAs
If you qualify, you can contrib
ute up to SSOO every year in an
STAY INFORMED
subscribe to
AUGUSTA FOCUS
Metro Augusta’s growing weekly newspaper!
Call (706) 724-7855, so YOU WILL KNOW!
AUGUSTA FOCUS
Business
education IRA for each child un
der age 18. You can then use the
furds that accumulatein that ac
count to pay for higher education.
Although contributions are not
deductible, the distributions, in
cluding earnings, are tax-free if
used to pay for qualified educa
tional expenses which include tu
ition, room, board, books and sup--
plies. The amount you contribute
to Education IRAs does not affect
the amount you may contribute
to other IRA plans.
Married couples with adjusted
gross income (AGI) as high as
$150,000 qualify to make a full
SSOO contribution. If your AGI
exceeds $150,000, your allowable
contribution is lower and phases
vut completely when your AGI
reaches $160,000. Singles are
eligible for a full contribution with
income as high as $95,000 phas
ing out completely at SIIO,OOO.
Anybalanceremainingin an Edu
cation IRA must be distributed
within 30 days after the benefi
ciary reaches age 30. The earn
ings portion of the distribution
must be included in the
beneficiary’s gross income and is
subject to a 10 percent penalty.
Another alternativeis toroll over
the balance tax-free into a new
Education IPA for another mem
ber of the original beneficiary’s
family who is under age 30.
Keep in mind that you cannot
take either the Hope or Lifetime
Learning credit in a year you re
ceive a distribution from an edu
cation IRA, unless you elect to
waive theincome exclusion. CPAs
advise that the tax credits may
very well be worth more to you
than the education IRA if you
don’t start it when the child is
very young.
Studentloan interest deduc
tion
Taxpayerswhohavetaken loans
topay college costs for themselves,
a spouse, or a dependent may
deduct at least a portion of the
interest they pay on those loans.
Beginning in 1998, an above-the
line deduction is available for in
terest paid on qualified education
loans. The maximum interest
deductionis sl,sooin 1999, $2,000
in 2000, and $2,500 in 2001 and
beyond. You can claim this deduc
tion whether or not you itemize
your deductions. Married couples
filing jointly with AGIs up to
$60,000 qualify, phasing out at
$75,000; for single filers, it’s
$40,000, phasing out at $55,000.
Thededuction is allowed for inter
est paid during the first 60 months
in which interest payments are
required.
A college education can trans
late into additional income and a
better life. If you’re not sure how
to make the most of these educa
tion related tax benefits, consult
with a CPA or other tax profes
sional.
Have You Been Turned Down?
WE 0O
E-Z PAY ji
CAsy v
MOTORS {5
BUY HERE ... PAY HERE ... WE FINANCE
Where You Get What You Pay For...
QUALITY!
1987 CHEVROLET SPECTRUM, Automatic, Blue, Air Conditioning, Nice Car! vsvsvseereese $ 2,495
1991 CHEVROLET LUMINA EURO 2 DR, Red, V-6 Engine, Automatic, AC.seeeerveeee $ 4,995
1990 CHEVROLET CAMARO I-ROC Z, T-tops, Automatic, AC eeeeesserreeeeesenneeee $ 3,995
1989 CHEVROLET SPECTRUM, 5-Speed, A/C, Clean! secesseessssssssssssssssssssnnsesss $ 2,995
1994 FORD ESCORT 4 DR, 5-Speed, Air Conditioningssssessessssssssssssasasssssssenses $ 4,995
1991 MAZDA 323, Automatic, Alr Conditioning seseessecsssssssssssssssssessssssssessassesse $ 2,995
1991 MAZDA 626, 5-Speed, A'C, Like Newl saveeccsssssscssssssssesssesssssssoscossssscoscse $ 3,295
1991 HONDA ACCORD LX, Factory Sunroof, 5-Speed, AC vsssessssssssssssssssesssssenee § 3,995
1988 HONDA ACCORD LX, 5-Speed, A/C, New Clutchuccsssessssssssssssssecssessscsscsnsd 3,995
1989 DODGE COLT, Red, Automatic, A/C, 35k Original Mlles sesesessssesssasssssssssesscesse § 2,995
1985 CHEVROLET BLAZER S-10, New Motor, Like New! seesssssssssssesesssesseseess § 3,995
1989 MITSUBISHI PICKUP, White, Mags, Bedliner, 5-Speedassesssssssssscssssssnsssnsesess 2,500
1991 MITSUBISHI PICKUP, Blue, Bedliner, Tool Box, AIC ssssssssssssassssssssssssssnsees 3,295
1987 CHEVROLET SILVERADO SHORT BED, Automatic, AC, PW/PL veseeessssssessesess $ 3,995
‘ Plus tax, tag & title,
ASK FOR MARK OR JERRY!
MECHANIC ON PREMISES: TONY
B
14
Rl e
pat "738-EZPA
CSRA Humane Society
celebrates grand opening
AUGUSTA
The CSRA Humane Society will
celebrate the grand opening of its
new kennel facility on Saturday,
June 26, from 10 a.m. to noon.
The Humane Society, which pre
viously relied on placing pets in
foster care, will have room to hold
nine cats and 12 dogs in space
beingleased from “Katz & Dogues”
located at 1946 Walton Way next
to Richmond Academy.
Informationregardingthe CSRA
Human Society, its mission and
how the community can help will
be available at Saturday’s Grand
Opening Celebration. The Hu
UGA Business Qutreach Services
Two courses to assist prospective
and active small business persons
will be offered in July by the Univer
sity of Georgia Business Outreach
Services/Small Business Develop
ment Center, Augusta office. Regis
tering for the courses should be com
pleted one week prior to the course
starting date. Call the office at 737-
1790 for moreinformation. Also, spe
cial arrangements for the handi
capped will be made if reported in
advance.
Are youhaving financial difficulties, be
o ing harassed or garnished by your credi
;‘ tors?
o 4 Are your properties being threatened
Pt with repossession or foreclosure? If the
i answer to any of the above questions are
true, it is possible that you can acquire
X ¢ relief under Federal Law (Chapter 7or 13
under Bankruptcy Act). To determine if
A you qualify for relief call:
Arthur)Nalker, Attorney at Law
796-7382 . 1-800-742-6524
mane Society is always in need of
volunteers and encourages all
thoseinterested to attend the next
member/board meeting on Mon
day,June 28, at Friedman Branch
Library at 6:30 p.m.
Thegrand opening will also have
pets available for adoption, T
shirts, refreshments and a live
broadcast by the WSLT “Lite 98"
morning team with Mark Sum
mers and Christine Short. For
more information regarding adop
tion or the CSRA Human Society’s
Grand Opening, please call (706)
228-4555.
“Starting Your Own Business”
will be offered two times, July 13 at
6:30-8:30 p.m. and July 29 at 3:00-
5:00 p.m. This two hour course will
cover an overview of necessary plan
ning, legal forms of business, financ
ing resources, licenses, permits, and
insurance for business. Fee S3O.
Call the University of Georgia
Business QOutreach Services/Small
Business Development Centerat 706/
737-1790 for further information.
BANKRUPTCY and
120105
BUY HERE ... PAY HERE ... WE FINANCE