900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 · 215.563.0276 · Fax: 856.667.3652

Tax Tip of the Week
For the week of
February 18, 2002

The 2001 Tax Act creates a new deduction for education

The new tax law provides taxpayers with a new deduction for qualified higher education expenses. If you qualify for this deduction, you can take it "above the line." This means that you can take the deduction even if you don't itemize your other deductions.

The deduction applies to tuition and fees spent for you, your spouse, and your dependents to attend school at a qualified higher education institution. The deduction amount is limited to $3,000 for 2002 and 2003. The deduction is limited to $4,000 for 2004 and 2005. This tax break ends after 2005.

There are income limits that apply to this tax deduction. In 2002 and 2003, you can't take the deduction if you're single and your income exceeds $65,000 or if you're married filing a joint return and your income exceeds $130,000. In 2004 and 2005, you will get at least part of the deduction (up to $2,000) with income as high as $80,000 for singles or $160,000 for marrieds filing jointly. There is no deduction allowed beyond these income levels.

Congress has managed to make this a very complicated tax provision. If you think you may qualify for this deduction, please contact us. We will gladly assist you in determining what tax benefits you might be entitled to.


Prior Tax TipsClick here to view previous tax tips.

"Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax-cutting information from time to time, please contact our office. We're here to help.

Home

 
 

untitled

This site designed and maintained by the Information Technology experts at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co.

We appreciate comments concerning our website. Contact our webmaster .