For information on the tax deadlines that apply to your business, contact our office. Time is running out for 2000 tax cuts Congress is pushing to make some tax law changes before it adjourns for fall election campaigning. Previous bills which would have reduced the marriage penalty for working couples and gradually phased out the estate tax were vetoed by President Clinton. There seems little hope for other tax changes Congress had hoped to make, including relief from the alternative minimum tax for middle-income taxpayers. These changes would not go into effect until next year, however.
Every parent knows how expensive a college education can be.
But many have questions about the income tax treatment for different types of college financial aid. These are not taxable to degree candidates to the extent that they are used to pay for qualified tuition and related course expenses. Payment for room, board, and incidental expenses are taxable, as are payments to nondegree candidates. Note that parents who furnish more than one-half of a student's total support may be entitled to a dependency exemption on their income tax return. The amounts received in the form of a scholarship are not considered part of total support.