What's New in Taxes This Year? Part 1
For details on these and other changes for 1998, see What's Hot at the IRS homepage.
New Child Tax Credits
If you have a child who was under age 17 at the end of 1998, you may be eligible for up to $400 in credits for each child. A credit called the Additional Child Tax Credit is refundable, so it may give you a refund even if you do not owe any tax. These credits are in addition to the child and dependent care credit and the earned income credit that you may be able to claim.
Student Loan Interest Deduction
If you paid interest on a qualified student loan, you may be able to deduct up to $1,000 of the interest.
You may be able to take credit for tuition and related expenses paid for yourself, your spouse, or dependents to enroll at or attend an eligible educational institution.