Tax Info

[secret_cajunman]

The Katrina Emergency Tax Relief Act of 2005 provides tax relief for persons affected by Hurricane Katrina. This includes areas around Marengo county, you can refer to Publication 547 and 4492 at www.irs.gov TurboTax does use this information as well. Hey, every bit helps, right?

These are the counties in Alabama as outlined in Pub 4492.
Alabama. The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston.

[Nursing_Chick]

I think you have to be effected to use this or if you had Katrina victims staying with you for at least 60 days and did not receive any compensation from them.

[demopolite]

If you attend an institution of higher education in ANY of the counties included in the "Gulf Opportunity Zone," you will be allowed more deductions than in past years, including rent, board, etc. Just be careful and have receipts for EVERYTHING.

[demopolite]

Also, if your adjusted gross income is less than $50,000, check out the Alabama Free File Alliance, which provides free online tax preparation software for processing your state and local taxes.

I have used the free online version of TurboTax/Intuit for the last two years and it has worked out marvelously.

[Jabber Jaw]

	Quote:	demopolite
	If you attend an institution of higher education in ANY of the counties included in the "Gulf Opportunity Zone," you will be allowed more deductions than in past years, including rent, board, etc. Just be careful and have receipts for EVERYTHING.

Do you know which counties/states are included in this and if it applies to online classes?

[demopolite]

	Quote:
	Gulf Opportunity Zone: The Gulf Opportunity Zone is made up of the following areas in three states: Alabama - The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington.

If you had to pay tuition and fees toward a degree granting program, then your educational expenses should qualify. If I were you, I would check out IRS Publication 970 for details about what expenses will qualify.

	Quote:
	Education Credits Expanded For GO Zone Students For tax years beginning in 2005 and 2006, the education credits and definition of qualified education expenses have been expanded for students attending an eligible educational institution in the Gulf Opportunity Zone (GO Zone). - The Hope Credit for a GO Zone student is increased from a maximum credit of $1,500 per student to a maxiumum credit of $3,000 per student. - The Livetime Learning credit for a GO Zone student is increased from a maximum credit of $2,000 per student to a maximum credit of $4,000 per student. In addition to tuition and fees required for enrollment or attendance at an eligible educational institution, qualified educational expenses for a GO Zone student include: - The expenses of course-related books, supplies and equipment are included in qualified expenses, if required for the course. - For special needs students, the expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. - Room and Board for a student who is at least a half-time student.

Did you get a Form 1098-T from the institution? Remember, there are LOTS of limits on the educational expenses deductions and credits. Don't just take a credit willy-nilly without looking into it if you are doing your own taxes. If you use any of the tax software, it will guide you through the process.

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