February 2007


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Use Tax Credits To Help Finance Your College Education

 by: Pat Nash

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Students are always on the lookout for ways to help pay or offset the cost of their tuition. There are various government grants and scholarships available to you if you qualify. But what if you don t qualify for these government programs? Don t loose hope there are still options available to you that can help offset those tuition bills.

Did you know that tax credits are another way that Uncle Sam can help you finance your college education? Well it s true and it has come to my attention that there are many students, old and new alike, who are not taking advantage of these educational tax credits that they are entitled to. Specifically the tax credits are the Hope Tax Credit and the Lifetime Learning Tax Credit. These two tax credits will reduce the amount of Federal Income Tax that you would pay dollar for dollar, unlike tax deductions that are used to lower your taxable income. It s like someone saying to you if you spend your money on college, I ll give it back to you. The tax credits are based on the amount of qualified educational expenses that students pay.

What are these qualified expenses? Qualified expenses are tuition and fees that are required to pay to an accredited college, university, or vocational school as a requirement for attendance. Fees that are not included are room & board, personal living and family expenses. Other expenses that may also qualify are expenses for books, supplies, student activity fees, and equipment if they are required to be paid to the school as a condition for enrollment.

Who is eligible for these tax credits? Anyone can claim these tax credits; you can claim these credits for yourself, your spouse and anyone you can legally claim as a dependant on your tax return.

The Hope Tax Credit is worth up to a maximum of $1,500, depending on how much the qualified educational expenses are, 100% of the first $1000 and 50% of the next $1000. To be eligible for The Hope Tax Credit the student need to be enrolled at least half time (6 credits) in at least one semester and meet certain income requirements. The Hope Tax Credit is available for each and every student, on the same tax return enrolled in a qualifying college program. This credit can be taken for the first two years of post secondary education (undergraduate degree or vocational school) for each student. A family with three students with qualified expenses of $2,000 each on the same return equals a $4,500 reduction in the taxes you owe.

The Lifetime Learning Tax Credit works a little bit differently, the credit is based on 20% of the of the first $10,000 of educational expense up to a maximum credit is $2,000 per return not per student. This credit can be taken for any and all years that a studennt takes even just one class that will improve or aquire job skills (undergraduate, graduate and professional degree courses included). If you have qualified expenses of $2,000 then you get a tax credit of $400 (.20 X $2,000).

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Consider this, these tax credits can bring down the tax that you owe on April 15th, and money that you don t have to pay in tax can be used to pay for the education you want and deserve. Other limitations are that both of these tax credits may not be used for the same student in the same year. Students that have been comvicted of a felony drug offense can not claim the Hope Tax Credit, but they can still take advantage of the Lifetime Learning Tax Credit.

This is just a breif overview of these tax credits that all students should know about and tahe advantage of. I reecomend that you do refer to IRS Publication 970 and IRS: Topics for Students for further information or discuss these tax credits with your Tax Professional.

About The Author

Pat Nash is currently a student in his final year in a Business Administration program. He blogs on different topics related to higher education. Visit his blog College Matters for more higher education information.

Copyright 2005 P. Nash

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General18 Feb 2007 01:01 pm

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Here s Help for the I Can t Say No Blues

 by: Kimberly Chastain

I hear it all the time. Cries from Christian women who want desperately to serve the Lord, but who feel overwhelmed. I almost dread going to PTO meetings or church services anymore because I just know somebody else is going to ask me to help with something, they say. Don t get me wrong. I want to help, but there are only so many hours in my day. I feel like I m just going to explode if I don t get some relief.

What usually follow these statements are apologies. I m sorry. I don t mean to complain. I ve been blessed with so much that I have no choice but to give back. And I really am glad to do it. Anyway, as a Christian, I m obligated to say yes when called on to help. Plus, if I don t do it, it simply won t get done.

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Does any of that sound familiar to you? Have you found those same statements coming from your own mouth? Do you rush around all throughout your days doing for others whether you have time to do it or not? Do you cringe whenever the phone rings and the voice on the other end starts with, Let me ask you something ? Do you have too much stress, not enough time, and a boatload of guilt for feeling the way you do? Then you most likely suffer from I Can t Say No Syndrome.

The Bible Says It s OK To Say No

While your intentions are probably good, the effects of your actions often turn out to be horrendous. Your husband fusses that you re running yourself ragged. Your children complain that you have no time for them. You gripe under your breath about everything because you re so sensitive.

Are you aware that it s all right to say no ? In fact, the Bible says it is OK to say no. Jesus, himself, clearly took time to rest as can be seen in Mark 4:38 among other passages. Even the son of God (in human form) knew His human body, mind, spirit, and soul needed a break from time-to-time. You, too, are expected to rest and take care of yourself. How else can you make your body a living sacrifice a temple as the Bible instructs?

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Feeling Guilty Is Biblically WRONG!

This is a real shocker to most people. In cases like these, Satan, not God, uses guilt to sway our actions. Psalm 69:5, Isaiah 6:7, Isaiah 27:9, and countless other passages of scriptures refer to the sin of guilt. Jesus died for our sins. That means, when we repent of our sin, it is wiped clean. There is no guilt.

Satan often uses the ploy of false guilt to overwhelm us. Don t let him work his tricks on you. This is nothing more than an attempt to keep you trapped and feeling depressed about not spending every minute of every day doing something for someone else.

God doesn t want you run down and tired all the time. How can you effectively serve Him if you barely have enough energy to get out of bed? Why would He want someone praising Him who is disgusted and cranky? Walking the tightrope of I Can t Say No is not God s idea of a fruitful life.

There Is A Better Way

Take time for yourself. Have you ever been on an airplane? Do you remember the spiel the flight attendant gave before take off? It went something like this: In the event of a decrease in pressure, an oxygen mask will fall from the panel above your head. If you re traveling with an older person or child, please secure YOUR OWN mask first so that you may better assist your travel partner. Even the airlines know you have to take care of yourself before you can effectively take care of anyone else.

Pray about the things people ask you to do. Actually wait for an answer from God before you give an answer to the committee chairman, the scout troop leader, or whoever else is asking for your help. Others will respect you when you tell them you ll pray about their request especially if you really do it!

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You are not trapped. There is a way to overcome I Can t Say No Syndrome. The first step is admitting you need help. Once you do that, you re open to living a freeing and more peaceful life than you ever thought possible.

About The Author

© 2004 Kimberly Chastain

Kimberly M. Chastain, MS, LMFT is the Christian Working Mom Coach and a Licensed Marriage and Family Therapist who specializes in helping Christian women make the most of their lives. She is the author of the on-line course, I Can t Say No and Pearls of Encouragement for Christian Working Moms, a free e-book. If you suffer from I Can t Say No Syndrome, visit Kimberly s site today for the details on an exciting email course that s sure to set you free! http://www.christianworkingmom.com/online.htm.

The Text Information Box above MUST be included for reprint privileges. You may reprint this article in it s entirety with the attached text box.

kimberly@jerpat.org

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Spring is coming and now is the time to make preparations for having a yard or garage sale. And, yes this includes the kids too.

For me spring always meant upcoming garage/yards sales to go to with my mom; but more importantly, those garage/yard sales I had with my mom. From these early experiences, I learned many valuable lessons that I use to this day. These include the necessity of de-cluttering, finance, how to make change, how to price an item, how to organize and display items, and customer service. Thanks to my mom s help, I was able to engage in an entrepreneurial endeavor at the tender age of eight. I have fond memories of my many mini-business endeavors and feel that these ventures contributed to my desire and successes in owning my own business now. Here are some pointers to get your child involved in having a garage or yard sale of his or her own when you have one.

For Children 8 and above:

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Gather Goods to Sell
Have your children go through their items to determine what they are ready to sell, part with, or outgrown. You as a parent have veto power, but quite often children will not even think of parting with something they still use. As a matter of fact you may have to assist them in this step since it is likely they will want to keep just about everything they own. Be ready to ask them these questions: When was the last time the item was played with or used?
1)Why do they wish to keep it?
2)What does it mean to them?
Having children answer these questions helps them to determine what items they wish to keep and those that have little value or use to them. This step teaches children the importance of letting go of stuff they won t use again and really don t value. Having children de-clutter their lives this way is a valuable skill that will serve them well throughout life and keep them from falling into the packrat trap.

Prepare Goods for Sale
Have children prepare items for sale by cleaning dirty items and boxing items into separate boxes labeled (Name) s Garage Sale Items. This way, when it is time to set up for the big garage sale day, your children will be able to find their stock easily.

Assist your child with pricing the items to sell. Go through each item one-by-one and ask your child the following questions to help them determine an acceptable price.
1)How much do you think this is worth?
2)How did you determine that price?
3)Do you think someone will pay your price for this item?
4)Should we ask ____ amount for this?
By asking your child these questions, it helps them to critically think about the value of items and their worth. By making pricing suggestions, it assists them with setting realistic prices. This step helps children learn the relative value or worth of items and gets them to think about how much the buying public would pay. Asking the question, Should we ask ____ amount for this? is a way of helping your child set a realistic price for the item.

Preparing for the Grand Opening
Set up an individual table for each child next to where you will be collecting money from customers. This way you can monitor and assist each child with customer transactions if need be and protect them from unscrupulous buyers.

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Have children set up their displays themselves. By completing this step, with your help and suggestions, children learn how to display items in a visually pleasing way that will attract customers.

Day of the Grand Opening
Provide each child with a change apron (available at most dollar stores) and with a small amount of change such as 2 $1.00 bills, 6 quarters, 10 dimes, and 10 nickels; i.e., $5.00 in change. This way they can collect payment for their items and if necessary, make change for customers. Children are able to reinforce their counting skills and learn how to interact with customers. Most importantly, allow your children to keep the proceeds from their sale, having them put half of the profits into their savings accounts. When children are allowed to keep the proceeds from the sale of their items, they are eager participants.

For Children 7 and Below:

Younger children who also wish to participate in the garage sale can by selling sodas. Set up a small table with a cooler full of various cans of sodas and ice. Place a simple Soda for Sale sign on the front of the table. Allow your younger children to sell sodas, helping them with change counting or selling as needed. This way, they still get the experience and knowledge gained by running their own small business.

As a child I truly enjoyed having my own garage sale and making money in the process. These small business ventures taught me what went into running a small business from the selection of goods to be sold to the final transaction with the customer. These life skills teach children the basics of money and customer service: skills that are sure to come in handy throughout their lives.

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About the Author

Jona is an instructional designer, web and graphic designer, and technical and business writer. When she isn t working on client projects, she can be found updating her personal project, www.simpleandfrugal.com, a website dedicated to those seeking to simplify their lives. Jona has practiced simple living/voluntary simplicity for over 10 years and is available for speaking engagements. She can be contacted at simplefrugal@fuse.net.

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