Chart to Tax Prophet Column for December 14, 1997

Copyright 1997 Robert L. Sommers, all rights reserved.

Chart to Tax Prophet Column for December 14, 1997

The following tax breaks are available in 1998: 

Tax Break

Description

AGI Limitations
Dependency Credits $400 per child; $500 per child in 1999, for children under age 17. Single: $75,000

Joint: $100,000

Hope Scholarship $1,500 credit for first two year of post-secondary education. Single: $40,000 -$50,000

Joint: $80,000 to 100,000

Lifetime Learning Credit 20% of first $5,000 ($10,000 in 2003). $1,000 in total ($2,000 in total in 2003). Single: $40,000 -$50,000

Joint: $80,000 - $100,000

Education IRA $500 per student until age 18 Single: $95,000 - $110,000

Joint: $150,000 - $160,000

IRA Contributions Eligibility increases in stages. Single: increase from $25,000 to $40,000 in 2005.

Joint: increase from $40,000 to $80,000 in 2007.

Educational Loan Deductions Interest deduction of $500 in 1998, increasing $500 per year to $2,500. Single: $40,000 to $55,000

Joint: $60,000 to $75,000

Roth IRA Non-deductible $2,000/ yr. Distributions are tax-free Single: $95,000 to $110,000

Joint: $150,000 to $160,000

IRA Rollover to Roth Rollover of IRA account to Roth IRA (transaction could be taxable) Single: $100,000

Joint: $100,000 (ineligible if married filing separately)

IRA for Non- Participant Spouse Up to $2,000 per year Joint: $150,000



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**NOTE: The information contained at this site is for educational purposes only and is not intended for any particular person or circumstance. A competent tax professional should always be consulted before utilizing any of the information contained at this site.**