| Coverdell Education Savings Accounts |
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| Congress has created the Coverdell Education Savings Account (ESA) to encourage parents and students to save for the ng costs of education. The Coverdell ESA is a trust or custodial account set up in the United States solely for the purpose of paying qualified education expenses for the designated beneficiary of the account. Any taxpayer who meets the adjusted income requirements can make a non-deductible contribution of up to $2,000 on behalf of a child who is under the age of 18. The tax advantage occurs at the time that the funds are used because the earnings of the contributions are distributed tax-free as long as they are used for qualified education expenses. More... |
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| Adoption Tax Credit |
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| A substantial tax credit is available for the qualifying costs of adopting an n eligible child. The credit is phased out if the taxpayer's modified adjusted gross income exceeds an amount set by the Internal Revenue Code. More... |
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| Stock Redemptions |
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| A stock redemption is the reacquisition of stock by a corporation in exchange for property, which includes money, securities, and indebtedness to the corporation. After a redemption, the stock may be canceled, retired, or held by the corporation as treasury stock. If the corporation redeems its stock in a manner that makes the distribution "equivalent" to a dividend distribution, then the amount received by the stockholder is a taxable dividend to the extent that it is paid out of earnings and profits. More... |
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| Long-Term Care Contracts and Expenses |
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| Premiums paid for a qualified long-term care insurance contract are a medical expense, but the deductible amount of the premium is limited by the age of the taxpayer at the end of the tax year. The deductible portion of premiums paid increases with the age of the taxpayer. The limit on premiums is for each person. More... |
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| Reparation Payments |
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| Congress has specifically excluded from gross income payments received after January 1, 2000, by individuals who suffered Nazi persecution during World War II or by their heirs or estates. These excludable payments are also not included in any tax provision that takes into account excluded income in computing modified adjusted gross income, including the taxation of social security benefits. More... |
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