Top 5 Tax Breaks for 1998

March 14, 1999 Column

Tax Break

Description

AGI Limitations

Dependency Credits for dependents under age 17 $400 per child; ($500 per child in 1999),$50 less per $1,000 above AGI limitations. Single: $75,000

Joint: $100,000

HOPE Scholarship $1,500 credit for first two years of post-secondary education Single: $40,000 -$50,000

Joint: $80,000 - $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

IRA Contributions Tax-deductible $2,000/yr. max Eligibility increases in stages Single: Increase from $25,000 to $40,000 in 2005

Joint: Increase from $40,000 to $80,000 in 2007

Student Loan Deductions Interest deduction of $1,000 for 1998; increasing $500/yr to $2,500 Single: $40,000 to $55,000

Joint: $60,000 to $75,000

IRA for Non-Participant Spouse Tax-deductible $2,000/yr max Joint: $150,000