Here’s good news
if you have college expenses
this year
August 2004
If you have higher
education expenses in 2004, you should be aware of a change in the tax
deduction you may be allowed to take.
Last year you could
deduct up to $3,000 of qualified tuition and fees you paid if your
income didn’t exceed $65,000 (single) or $130,000 (married, filing a
joint return). This year if your income doesn't exceed these limits,
you’ll be allowed to deduct up to $4,000 for these expenses.
More good news: If
your income falls between $65,000 and $80,000 (single) or between
$130,000 and $160,000 (married), you’re allowed a $2,000 deduction for
tuition and fees. This is a new deduction for 2004. Both the $2,000 and
$4,000 deductions will end after 2005.
With many education
tax breaks available, planning for best utilization of deductions and
credits is crucial. For assistance in finding what’s best in your
particular circumstances, contact our office.
Please call us for
a free consultation and ask about our Profitability Enhancement Program.
Return to 2004 Tax Tips
