College Savings Methods / Couples Gain Special Tax Break for Spouses Heading off to School

By Porter, Sylvia | THE JOURNAL RECORD, October 6, 1987 | Go to article overview

College Savings Methods / Couples Gain Special Tax Break for Spouses Heading off to School


Porter, Sylvia, THE JOURNAL RECORD


More adults are heading back for additional schooling - and therein lie tax breaks you must not ignore. What if you have children, you are working and your spouse is going to school? Then you have a shot at this tax saver:

It's the child care credit. A couple with one spouse employed and the other a full-time student is entitled to the same child care credit as a couple with both spouses working.

It makes no difference whether the schooling has any connection with a past or future job. It could be the study of English literature, and the child care expenses would still be eligible for the credit.

Result: You can claim a tax credit - a dollar-for-dollar reduction in your tax bill - equal to 20 percent of your child-care expenses. (Couples with incomes of $28,000 or less can claim a bigger credit. The credit increases 1 percent for every $2,000 drop in income until it reaches 30 percent.)

Maximum credit: $480 for one child and $960 for two or more children (up to $720 and ,440, respectively, for lower-income couples).

But the amount of child-care expenses on which the credit is based cannot exceed the lesser of your earned income or your spouse's. If your spouse is a full-time student, he or she is considered to have an earned income of $200 a month if one child or dependent is cared for, or $400 a month if there are two or more children or dependents.

Key point: In order to be a full-time student, your spouse has to be enrolled in school at least five months during the year. And what may be a problem if your spouse has started school this fall.

Example: John Allen has a full-time job and Mrs. Allen has been very active in community affairs. The Allens have a housekeeper, Emma. Mrs. Allen started graduate school in September and Emma is spending about half her working time taking care of the Allen's two children while Mrs. Allen is in school. Emma is paid $700 a month.

Question: Will the Allens be in line for a child care credit on Emma's salary in 1987?

Answer: Not as things stand now. Reason: Mrs. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

College Savings Methods / Couples Gain Special Tax Break for Spouses Heading off to School
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.