A limited deduction is allowed for "qualified higher education expenses" -- tuition and related expenses under the same definition as for tuition credits, above. A $4,000 above the line deduction (Form 8917) is allowed for qualified tuition expenses in 2012. Deduction up to $4,000 is allowed on if taxpayer's (modified) adjusted gross income is $65,000 or less ($130,000 or less on a joint return). If taxpayer's modified adjusted gross income is more than $65,000 but not more than $80,000 (more than $130,000 but not more than $160,000 on a joint return), deduction is allowed up to $2,000. The tax deduction reduces your amount of income, reducing amount of tax you pay. You do not need to itemize deductions on Schedule A (Form 1040) in order to take this deduction, which benefits higher earners who cannot take the Lifetime Learning Credit because
their income exceeds the limits.
Business expense deduction is allowed, without dollar limit, for education that serves the taxpayer's business, including employment. Deduction is also allowed for student loan interest, but a taxpayer may not take more than one deduction for the same item. In addition, you cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return.
"Qualified higher education expenses" must be reduced by any such expense paid with an amount treated as tax-free under the rules for excluding income from Series EE bonds, or Section 529 or 530 programs.
If you have any questions please comment below or feel free to contact us at our office (508) 540-3683 or visit our website!
Until next week, Happy Financial Planning
~Gary M. DellaPosta, CPA
With the 2012 hurricane season now under way and memories of tornadoes and other natural disasters fresh in our collective minds, now is the time for
individuals and businesses to safeguard their tax records by taking a few simple steps.
Take Inventory. Gather all of your documents and make an inventory list. You may find everything in a single location, but more likely than not, you’ll have to hunt around to find all of your documents. Don't forget to check computer files, storage boxes, file cabinets, old and new computers and laptops, thumb drives, and external hard drives and backup disks.
Depending on how complex your finances are, you may opt for a single list or choose to make two separate lists. The first list might include items such as insurance policies, mortgages and deeds, car titles, wills, pension and retirement-plan documents, powers of attorney, medical directives, and so on. The second list might contain a list of less essential documents such as brokerage accounts, loans that have been paid off, end-of-year bank statements, and copies of old tax returns and supporting documentation.
Create a Backup Set of Records and Store Them Electronically. Keeping a backup set of records -- including, for example, bank statements, tax returns, insurance policies, etc. -- is easier than ever now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet.
Even if the original records are provided only on paper, they can be scanned and converted to a digital format. Once the documents are in electronic form, taxpayers can download them to a backup storage device, such as an external hard drive, or burn them onto a CD or DVD (don't forget to label it).
You might also consider online backup, which is the only way to ensure that data is fully protected. With online backup, files are stored in another region of the country, so that if a hurricane or other natural disaster occurs, documents remain safe. Contact us if you need assistance with this.
Visually Document Valuables. Another step you can take to prepare for disaster is to photograph or videotape the contents of your home, especially items of higher value. Call us for more help compiling a room-by-room list of belongings.
A photographic or video record can help prove the fair market value of items for insurance and casualty loss claims. Store the photos or video with a friend or family member who lives outside the area, or as part of your online document backup.
Update Emergency Plans. Emergency plans should be reviewed annually. Personal and business situations change over time, as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds. Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service
If disaster strikes, call us right away. We can help you get back copies of tax returns and all attachments, including your Form W-2. We're here to help.
Hello! My name is Heidi Ingram and I have owned and operated a large family daycare for 13 years. and have been in the fitness world for approximately 17 years.
My personal philosohy is: I believe everyone has the potential to achieve excellence, given the right tools and methods, the possibilities to achieve your goals are greatly increased... encouragement, engagement and enthusiasm are my key ingredients in producing success.
I have been teaching Pilates for 6 years both Mat and Reformer, group and privates. I am also comprehensively certified in classical Pilates through the Peak Pilates System. I have worked with teenage girls and boys for the last 5 years in both summer and winter fit camps with excellent results.
Having worked in various gyms and studios throughout the Cape including Balance Health & fitness, Gym Express, Falmouth Sports Center, Cynthia Lane Studios and most recently Fitness Directions; I have gained tremendous experience and knowledge. I also owned and operated my own personal training business for 5 years before I opened Heidi's Daycare.
I have an Associate in Early Childhood Education and Medical Assistant, graduating Phi Beta Kappa in both. I am certified in Nutrition and have worked with personal training clients as well as the children in my care for about 15
years. I am also an avid runner and triathlete and have also competed in the Falmouth Road Race for 15 consecutive years with my best time of 49 minutes. Last year I participated in the Pan Mass Challenge and intend to do so again this year.
I look forward to answering your questions regarding fitness and nutrition!
Thank you so much for welcoming me as an Advisor. I’m excited to be a part of the Cape Cod Mommies group and hope my insights will help you through your young family’s sleep challenges. Since Amy mentioned early rising, a very common sleep issue, I thought I would make that the focus of my first blog.
If your adorable little alarm clock wakes up at 6:15am refreshed and ready for action – though it may feel like the middle of the night to us parents – you may have to just go with the flow. 6-7am is a biologically appropriate time for babies to wake. However, if she is groggy, falling apart by 7am, or consistently waking before 6am, you’ll want to tackle the early rising once and for all.
Here’s a look at the most common reasons for early rising…
Too late of a bedtime.
I know this doesn’t seem logical. We tend to think that if our children stay up late, they will crash hard and sleep in the following morning. Alas, this is rarely the case. Depending on their age, most babies and young children naturally want to fall asleep (not start bedtime routine) between 7-8pm. Missing their “sleep window” triggers the release of cortisol, the “fight or flight” hormone, which can make for a harder bedtime, more wakeful night, and early rising.
Nap deprivation in general.
Babies and young children who are not getting adequate naps on a regular basis tend to wake early in the morning. It’s important to know approximately how many hours of naps your child needs based on their age (understanding that these are averages – some children will need more, others slightly less). For example, a six month old needs approximately 3.5 hours of naps spread out over 2-3 naps, whereas a two year old needs approximately 2 hours of sleep during their afternoon nap. For more information on how much sleep your child needs, click here.
Too big of a wakeful window
Too long of a wakeful window prior to bedtime means that your child is going to bed overtired, with cortisol running through their body. This means we need to base bedtime partly on when our baby woke up from their last (or only) nap. For babies under 6 months, the maximum wakeful window is about 2 hours. As babies approach one year, the window extends to about 3 hours. Some well-rested toddlers and preschoolers can handle a 4-hour window, max. It’s important to watch for your child’s sleepy cues and tinker with bedtime to find out what works best for them.
Too drowsy at bedtime
Bedtime is the easiest time to get to sleep. If we act as our child’s sleeping pill, getting them to sleep at bedtime by holding, rocking, feeding, or patting them down, then how can we ask them to do it themselves when they stir at 5am,
the hardest time of the day to get to sleep?
If none of these ring a bell, take a look at your child’s sleep environment and make sure that there’s nothing external contributing to the early rising. Perhaps the birds chirp in the tree near their bedroom window or the morning light is streaming in through their curtains. White noise or blackout shades can make a big difference during the early morning hours, when babies are feeling relatively well rested after 9-10 hours of sleep.
Wishing you and your little ones many happy mornings together!
Visit Rebekah at:
Counting Sheep Pediatric Sleep Coaching
Cape Cod Moms