Congress wants to expand tax incentives for education.

Kiplinger Tax Letter, The, May, 1999

Congress wants to expand some tax incentives for education, in addition to the ones that we mentioned in our May 14 Tax Letter.

Several provisions stand a good chance of passing in the tax bill, even though the President will veto the education bill for other reasons.

Allowing education tax credits when education IRAs are tapped. When an education IRA is used to pay tuition in a year, the HOPE credit or lifetime learning credit still could be claimed on behalf of a student if the expenses on which the credit is claimed aren't paid with IRA funds.

Extending the payin deadline for education IRAs. Would be moved from Dec. 31 of the current year until April 15 of the following tax year. Removes a trap for unwary taxpayers and matches the regular...

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