The American Opportunity Credit and the Lifetime Learning Credit may help you pay for the costs of higher education. If you pay tuition and fees for yourself, your spouse or your dependent you may qualify for these credits.

Here are some facts you should know about these important credits:

American Opportunity Credit　

 The AOTC is worth up to $2,500 per eligible student.

 The credit is available for the first four years of higher education at an eligible college, university or vocational school.

 The credit lowers your taxes and is partially refundable. This means you could get a refund of up to $1,000 even if you owe zero tax.

 An eligible student must be working toward a degree, certificate or other recognized credential.

 The student must be enrolled at least half time for at least one academic period that began during the year.

 You generally can claim the costs of tuition and required fees, books and other required course materials. Other expenses, such as room and board, do not qualify.

Lifetime Learning Credit　

 The credit is worth up to $2,000 per tax return per year. The yearly limit applies no matter how many students are eligible for the credit.

 The credit is nonrefundable. This means the amount you can claim is limited to the amount of tax you owe.

 The credit is available for all years of higher education. This includes courses taken to acquire or improve job skills.

 You can claim the costs of tuition and fees required for enrollment or attendance. This includes amounts you were required to pay to the institution for course-related books, supplies and equipment.

You cannot claim either of these credits if someone else claims you as a dependent on his or her tax return. Both credits are subject to income limitations and may be reduced or eliminated depending on your income.

Keep in mind that you can’t claim both credits for the same student in the same year. You may not claim both credits for the same expense. Parents or students claiming either credit should receive a Form 1098-T, Tuition Statement, from their educational institution. You should make sure it is complete and correct.

STANEK TAX SERVICES · 15701 STATE ROAD 50 STE 204 · CLERMONT, FL 34711

Tel: (407) 434-1040 · Fax: (877) 386-1040 · e-Mail: info@stanektax.com

Adoption can create new families or expand existing ones. The expenses of adopting a child may also lower your federal tax. If you recently adopted or attempted to adopt a child, you may be eligible for a non-refundable tax credit. You may also be eligible to exclude some of your income from tax. Here are ten things the IRS wants you to know about adoption tax benefits.

1.　The maximum adoption tax credit and exclusion for 2013 is $12,970 ($13,190 in 2014) per eligible child.

2.　To be eligible, a child must generally be under 18 years old. There is an exception to this rule for children who are physically or mentally unable to care for themselves.　

3. The tax credit is nonrefundable. This means that, while the credit may reduce your tax to zero, you cannot receive any additional amount in the form of a refund.

4.　If your credit exceeds your tax, you may be able to carry forward the unused credit. This means that if you have an unused credit amount for the tax year, you can use it to reduce your taxes for the following year. You can carryover an unused credit for up to five years or until you fully use the credit, whichever comes first.　　　

5.　Use Form 8839, Qualified Adoption Expenses, to claim the adoption credit and exclusion. You cannot efile a tax return when an adoption credit is claimed. You must mail your return to the IRS.

6.　Adoption expenses must directly relate to the legal adoption of the child and they must be reasonable and necessary. Expenses that qualify include adoption fees, court costs, attorney fees and travel costs.

7.　If you adopted an eligible U.S. child with special needs and the adoption is final, a special rule applies. You may be able to take the tax credit even if you did not pay any qualified adoption expenses.

8.　If your employer has a written qualified adoption assistance program, you may be eligible to exclude some of your income from tax.

9.　Depending on the adoption’s cost, you may be able to claim both the tax credit and the exclusion. However, you cannot claim both a credit and exclusion for the same expenses. This rule prevents you from claiming both tax benefits for the same expense.

10.　The credit and exclusion are subject to income limitations. The limits may reduce or eliminate the amount you can claim depending on your income.



STANEK TAX SERVICES · 15701 STATE ROAD 50 STE 204 · CLERMONT, FL 34711

Tel: (407) 434-1040 · Fax: (877) 386-1040 · e-Mail: info@stanektax.com

   Starting this 2014 tax season – the Internal Revenue Service will no longer offer free tax preparation services. The service suggests taxpayers to utilize online computer programs or non-profit organizations to assist them.


This is the IRS Statement:

"Due to resource constraints, fewer tax returns have been prepared at IRS walk-in offices in recent years. For several years, return preparation has only been available in a limited format – only offered at some IRS offices and not every day of the week at some locations. In addition, taxpayers had to have income below the Earned Income Tax Credit thresholds to receive this assistance.

With the growth in electronic tax preparation and continued resource limitations, the IRS will be directing qualified taxpayers during the upcoming filing season to more than 13,000 volunteer partner sites across the country rather than limited services at the IRS’s 250 walk-in offices. The IRS will refer taxpayers who visit the walk-in offices for tax preparation to the nearest volunteer site for tax return preparation.

In addition, the IRS Free File program on IRS.gov offers free e-file and tax software to help taxpayers prepare their returns."

Tax season is fast approaching, and those of you with home offices know how hard it is to calculate your residence-based business deductions under current tax laws.

But there’s good news: After acknowledging how “complex and burdensome” the necessary recordkeeping was. The IRS just recently amended them to add an easy to calculate safe harbor method. Here’s what you need to know:

• Filers can now determine their allowable deduction by multiplying the square footage of the portion of their residence allocated for business purposes by $5.00 up to a maximum 300 square feet ($1,500) for the taxable year starting January 1, 2013.

• “Allocated for business purposes” is defined as: a portion of a owned, rented, or leased dwelling that is used exclusively for business purposes, a place to meet with patients, clients, customers in the normal course of business, a separate structure used in connection of trade or business, or space used on a regular basis for the storage of inventory or product samples used for your business.

• You can still use the old $280 method for calculating your allowable deduction. You can switch back and forth between methods from taxable year to taxable year as you see fit.

• This doesn’t apply to you if your business pays you advances, allowances, or reimbursements for your home office.

• You can’t declare a deduction for an amount larger than the gross income of the business associated with your home office makes for the taxable year.

• Spouses, roommates, or partners are each eligible for their own deduction for a home office up to 300 square feet.

• If the allotted space for your business-associated allotment fluctuates from month to month, provide your average for the year. For example, if you have a home office for the first six months of the year that’s 200 square feet, your calculation should look like this: (200 + 200 + 200 + 200 + 200 + 200 + 0 + 0+ 0+ 0+ 0+ 0)/12 months) x $5.00 = $500.

Comparison of methods

Simplified Option Regular Method Deduction for home office use of a portion of a residence allowed only if that portion is exclusively used on a regular basis for business purposes Same Allowable square footage of home use for business (not to exceed 300 square feet) Percentage of home used for business Standard $5 per square foot used to determine home business deduction Actual expenses determined and records maintained Home-related itemized deductions claimed in full on Schedule A Home-related itemized deductions apportioned between Schedule A and business schedule (Sch. C or Sch. F) No depreciation deduction Depreciation deduction for portion of home used for business No recapture of depreciation upon sale of home Recapture of depreciation on gain upon sale of home Deduction cannot exceed gross income from business use of home less business expenses Same Amount in excess of gross income limitation may not be carried over Amount in excess of gross income limitation may be carried over Loss carryover from use of regular method in prior year may not be claimed Loss carryover from use of regular method in prior year may be claimed if gross income test is met in current year