|
GET CONNECTED
TAXES
Savvy strategies to help reduce your taxes
Education Tax Breaks
If you’re gaining business smarts by paying for a higher education, you could also get a tax break. The Hope Credit and Lifetime Learning Credit are education credits you can subtract in full from your federal income tax.
The Hope Credit, worth up to $1,500 per year, applies for the first two years of post-secondary education, such as college or vocational school. The Lifetime Learning Credit, with a maximum credit of up to $2,000 per year, applies to undergraduate, graduate and professional degree courses. To learn more, see IRS Publication 970, “Tax Benefits for Higher Education,” available at www.irs.gov.
Taxpayers Beware
The Internal Revenue Service is warning taxpayers of yet another scam. The e-mail-based scheme attempts to trick taxpayers into revealing personal information such as Social Security numbers, driver’s license information and bank and credit card numbers. Unsuspecting consumers receive an e-mail that claims they’re under investigation for tax fraud. The e-mail tells recipients that they can help the investigation by providing personal information and directs them to an official-looking Web site.
Don’t be fooled. The Web site is bogus. The IRS doesn’t use e-mail to contact taxpayers about issues related to their accounts. Official taxpayer contact usually includes a letter on IRS stationery in an IRS envelope. IRS letters also contain a contact phone number. If you receive a suspect e-mail, contact the IRS at (800) 829-1040.
|
