Making Back to School Easier for Moms

As part of the government’s stimulus program to restore the economy, the Internal Revenue Service has created an opportunity for mothers to return to school in the form of tax credits and a relaxation of allowable distributions from college savings plans. eligible. The American Opportunity Credit, a modification of the Hope Tax Credit program, targets women and any taxpayer who wants to continue their education.

According to the IRS website, the new American Opportunity Credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those They don’t owe taxes.

Change highlights:

– additional required course material added to the list of qualified allowable expenses,

– the allocation of credit to be claimed for four years of post-secondary education instead of two,

– the full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing jointly,

– many who qualify will qualify for the maximum annual credit of $2,500 per student, which is a $700 increase over the original Hope credit

– a qualified, non-taxable distribution from a Section 529 plan during 2009 or 2010 now includes the cost of purchasing any computer technology or equipment or Internet access and related services, if such technology, equipment or services are to be be used by the plan beneficiary and the beneficiary’s family during any of the years that the beneficiary is enrolled in an eligible educational institution,

– Pell Grants have increased from $4,050 to $5,100.

The economic conditions in this country in recent years have changed lives. Not just a few lives, but the lives of the majority of people in this country. Unless you have the privilege of being one of the richest 1% in this country, chances are you have been affected in some way.

How long will this situation continue? How many more years will the economic situation affect you?

The answers to these questions are a guess. Opinions from experts in the field vary as to the severity and how long the status quo will continue. Economic indicators like unemployment statistics, consumer confidence, gross national product, and others swing from one extreme to the other every time they are reported.

These times have been compared to the Great Depression of 1932. It is frightening to think that in nearly 80 years, advances in predicting the likelihood of a repeat of the 1932 Depression do not seem to have gone very far. While the reasons for the 1932 depression are clearly different, too many similarities remain to ignore.

The only constant is that there can be no one more reliable in times of financial stress than yourself. Preparing for unplanned career changes is essential, and education may be the answer. Choosing a career that interests you and is good at can ensure your financial well-being. Ensuring a well-rounded education can make a career change easier with minimal additional training if necessary.

If you need to change your career or work focus, seek further education. In addition to the Hope Tax Credit, look at the Back to School program, which encourages colleges to increase financial aid for the unemployed while maintaining their unemployment benefits.

Don’t let these opportunities pass you by. The government is looking for people like you. This could be the catalyst that changes your future.