The EIC has a sliding scale. The more you earn in that category, the lower the amount you receive in credit. This sometimes gives working families a shot in the arm to be able to buy the things they need. Beasley said people have been asking a lot about the Hope credit, which applies to the first two years of post-secondary education. Both the payment and start of the related academic period must have been after 1997, Beasley said.
Students are also able to benefit with student loan interest deductions.
This type of IRA, contributions are not deductible but earnings grow tax-free and qualified withdrawals are not taxable. A person my convert a traditional IRA to a Roth IRA without penalty and include the taxable amount in that years income as though it were a distribution, Beasley said. Filing electronically Perhaps filing tax returns electronically produces the most questions. When a person files electronically, it takes half the time it takes to get a paper return, Beasley said. Another advantage, he said, is the person will get a confirmation sent back to them once their information is received, something a person does not get with a return filed by paper.