You May Qualify for $2,000 or $2,500 Credit Toward
Post-Secondary Education Costs.
Two Federal tax credits, the American Opportunity Credit and Lifetime Learning Credit, may help you reduce tuition and related expense costs.
Key Facts about the American Opportunity Credit:
- The American Opportunity credit can be up to $2,500 per qualifying student.
- Student must be pursuing an undergraduate degree or other recognized educational credential.
- Eligible expenses include tuition and fees, course related books, supplies and equipment.
- The full credit is generally available to single taxpayers whose modified adjusted gross income is less than $80,000 or less than $160,000 for married couples filing jointly.
Key Facts about the Lifetime Learning Credit:
- The Lifetime Learning credit can be up to $2,000 per qualifying student.
- Lifetime Learning credit is for all years of post-secondary education and for job skills acquisition and job-related improvement courses.
- The maximum credited is limited to the amount of tax you must pay on your return.
- Eligible expenses include tuition and fees, course related books, supplies and equipment.
- The full credit is generally available to single taxpayers whose modified adjusted gross income is less than $51,000 or less than $102,000 for married couples filing jointly.
Contact us if you would like to know more about these education credits.
 Claiming Medical and Dental Expenses
on Your Taxes
You may be able to deduct some medical and dental expenses when you file your 2011 tax returns.
Here's what you should know about medical and dental benefits:
1. You must itemize. Deduct qualifying medical and dental expenses on Form 1040 Schedule A.
2. Deduction is limited. You can deduct total medical expenses that exceed 7.5 percent of your adjusted gross income for the year.
3. Expenses must have been paid in 2011.
4. You can't deduct reimbursed expenses.
5. Who qualifies? Qualified medical expenses you pay for yourself, spouse and dependents may be included. Some exceptions and special rules apply. Contact us if you would like more information.
6. Types of medical and dental expenses that qualify. Expenses that paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting and structure or function of the body.
7. Some medications may qualify. You can only deduct prescription medication and insulin. Premiums for medical, dental and some long-term insurance expenses may qualify. Lactation supplies are also deductible.
8. Transportation costs. If you use your car for medical transportation, you can deduct gas and oil or the standard mileage
rate at 19 cents per mile from January 1, 2011 - June 30, 2011 and 23.5 cents per mile July 1, 2011 -
December 31, 2011. Taxi, bus, train and plane fare for medical care may also qualify.
Contact us for more information about medical and dental deductions.
Tax Scams You Should Know About!
Identity theft peaks around tax time.
Identity thieves look for ways to use a taxpayer's identity and personal information to file a tax return and receive a fraudulent refund. If you receive a notice from the IRS notifying you that they received more than one tax statement filed under your name, then you've got trouble. It may be the first tip-off that you've been victimized.
There are fake websites claiming tax help that lure victims into providing valuable personal and financial information. If you receive an email that appears to be from the IRS or an organization such as the Electronic Federal Tax Payment System (EFTPS) report it immediately to the IRS at
The IRS does not initiate contact with taxpayers by email to request personal or financial information!
Contact us if you have questions about your tax returns.
Questions on your tax returns? Call us at 508.871.7178 or email: contact@smithsullivancpa.com or go to: www.smithsullivancpa.com 
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