TAX TIPS:
 
 

Child Credit of $400.00 in 1998 and $500.00 in 1999 is available for dependents under 17 years of age on December 31 of the tax year as a "nonrefundable credit."

Farmers may be able to benefit from 3 year averaging of certain types of income. 3 year averaging has now been made a permanent provision.

Hope & Lifetime Learning Credits are nonrefundable credits and must be used exclusively per student. . .,i.e., either the Hope Scholarship Credit can be taken or the Lifetime Learning Credit can be taken at once for each student.  (This is currently being interpreted by the tax year and not the school year.)   The credit is allowed on the tax return where the exemption of the student can be claimed.

WISCONSIN allows up to a $3,000.00/student  income deduction for tuition expenses for qualified institutions of higher education.

Investment Income for purposes of EIC has been redefined to exclude sales of business assets.  However, the sales of the business assets are used in calculating total income.  The sale of worn out business assets by themselves will not exclude small business people from collecting EIC if they are entitled to it otherwise.

Long Term Capital Gains is presently defined as having a holding period of 12 months or more.

Standard Mileage Rate has been decreased to 31 cents/mile.

For more information link to the  IRS  webpage.