Tuesday, August 14, 2012

A Taxing Curriculum

This Friday, the Carlino clan (at least those of us still living at home) will pack the car and head down to the mid-Atlantic region for that education ritual known as college visits.

Our first top is colonial Williamsburg for a sit-down at Thomas Jefferson’s alma mater, William & Mary. I’m sure somewhere in the discussion will be matter of what non-resident Virginians like us will be expected to fork over in terms of tuition, room, and board.


Since I already have one offspring at a private college in Philadelphia, I tried my utmost to convince my younger one the benefits of building a good foundation at a local community college – not to mention the attraction of paying $350 a credit.

In very respectful terms I was told no.

So, beginning in 2013, it looks like it will be Hamburger Helper on the menu at Chez Carlino at least three times per week.

But I digress.

Our next step is to determine which cathedral of higher learning will bequeath the most money in eligible scholarships. Too bad she’s a brunette, as I hear Clairol offers a five-figure award to those who are natural redheads.

There are also available tax credits, which — despite my covering the accounting profession for 12 years — were always more than a bit confusing for me to understand without the considerable help of Rocco, my tax preparer.

Without consulting me, the AICPA recently took it upon themselves to submit written testimony to lawmakers on Capitol Hill maintaining that tax credits and deductions are too complicated and confusing as to make it difficult for taxpayers to ascertain which ones are the best for them to take.

Apparently the Tax Code contains roughly 14 provisions that are divided into two categories — those that help taxpayers meet their current education expenses and those that help usher in savings for future education costs.

The institute said contributors to this confusion include requirements, eligibility rules, and income phase-outs that vary from incentive to incentive.

One of the suggestions was that Congress replace the current buffet of multiple educational tax incentives such as the Hope Credit, Lifetime Learning Credit, and the American Opportunity Tax Credit, with a new consolidated credit that combines the benefits of all and eradicate all duplicate provisions.

Now that’s a solution even I can understand.

In the interim, I’ll keep my options open in terms of scholarship applications and, of course, a second job.

If only I could drive a forklift —  I heard Home Depot is hiring.

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