Chart to Tax Prophet Column for December 14, 1997The 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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