Going to college can be a stressful time for students and parents. The IRS offers these tips about education tax benefits that can help offset some college costs and maybe relieve some of that stress.

•    American Opportunity Tax Credit.  This credit can be up to $2,500 per eligible student. The AOTC is available for the first four years of post secondary education. Forty percent of the credit is refundable. That means that you may be able to receive up to $1,000 of the credit as a refund, even if you don’t owe any taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment. A recent law extended the AOTC through the end of Dec. 2017.

•    Lifetime Learning Credit.   With the LLC, you may be able to claim up to $2,000 for qualified education expenses on your federal tax return. There is no limit on the number of years you can claim this credit for an eligible student.
You can claim only one type of education credit per student on your federal tax return each year. If you pay college expenses for more than one student in the same year, you can claim credits on a per-student, per-year basis. For example, you can claim the AOTC for one student and the LLC for the other student.
You can use the IRS’s Interactive Tax Assistant tool to help determine if you’re eligible for these credits. The tool is available at IRS.gov.

•    Student loan interest deduction.  Other than home mortgage interest, you generally can’t deduct the interest you pay. However, you may be able to deduct interest you pay on a qualified student loan. The deduction can reduce your taxable income by up to $2,500. You don’t need to itemize deductions to claim it.
These education benefits are subject to income limitations and may be reduced or eliminated depending on your income.

For more information, visit the Tax Benefits for Education Information Center at IRS.gov. Also, check Publication 970, Tax Benefits for Education. The booklet’s also available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Think you have your Golden Years covered? – Get it in 
writing! says expert financial planner
“Age 85 is a bad time to go broke,” says expert retirement planner Jeff Gorton.  Personal savings, various investments and, yes, Social Security may prove to be short of what you’d expected.
“Budgeting how you spend money before retirement can often be a misleading measurement of how you’ll actually spend it during retirement,” says Gorton, a veteran Certified Public Accountant and Certified Financial Planner™, and head of Gorton Financial Group (www.gortonfinancialgroup.com).
“Spending 40 hours a week at work not only earns you a paycheck, it also keeps you from spending money on more vacations, matinee screenings at the movie theater, extra trips to the mall or shopping online. You need to be exceedingly realistic in your planning, and the five years before retirement are actually the most crucial in solidifying post-employment stability.”
To prevent a rude awakening during retirement, Gorton makes certain his clients start with a written income plan (WIP). He reviews the benefits and importance of this “living document”:
• A comprehensive list of life expenses paints a clearer picture. For a 65-year-old married couple today, there is a 72 percent chance that at least one spouse will live to age 85; a 45 percent chance that one will live to age 90, and an 18 percent chance that one will reach age 95, according a recent study from the CDC National Center for Health Statistics. You may not think of listing things like pet care, yard maintenance, and regular visits to salons or spas. But if you enjoy those services now, you may want them during retirement, and you might find that you underestimated the real cost of maintaining your desired lifestyle. And, that’s not including gifts to children and grandchildren!
• The forecast of a two-legged stool. A WIP helps you appreciate the reliability of retirement income. What sources of income do you anticipate having? Traditionally, retirement funding has been viewed as a “three-legged stool,” implying a balance between Social Security, retirement plans and savings/investments. As the baby boom generation ages, Social Security benefits may decrease — and the age at which an individual can collect benefits may increase. Changes in employment may affect retirement plans. As a result, the third leg of the stool, savings/investments, may become even more important.
• Who is authoring your WIP? As with all written documents, you must always consider the source. What you may not realize is that a financial planner is liable to have a stake in selling you a financial product. Just like a retailer may have an incentive to move certain brands of products, many planners are incentivized to have you invest in specific financial vehicles from major institutions. What plan works best for you? Seek advice from an expert who isn’t trying to sell you something, such as an independent firm.
“If you don’t have a written income plan, then you’re just hoping things will work out,” Gorton says.

If you’re looking for a way to help your community, then consider becoming a tax volunteer. The IRS is looking for volunteers now who will provide free tax help next year.
Volunteer Income Tax Assistance and Tax Counseling for the Elderly are community-based programs. They provide free tax return preparation for people who need tax help but can’t afford it. People with low-to-moderate incomes, seniors, people with disabilities and those with limited English skills usually qualify for this free service.
Here are six good reasons why you should become a VITA or TCE volunteer.
1.    No previous experience is required. Volunteers receive specialized training and have the option of serving in a variety of roles. If you’re fluent in a language other than English, you can help those who do not speak English.
2.    IRS provides free tax law training and materials that allow volunteers to prepare basic individual income tax returns. Volunteers learn many aspects of tax return preparation. This includes tax deductions and credits that benefit eligible taxpayers, like the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly.
3.    The hours are flexible. Volunteers generally serve an average of three to five hours per week. Volunteer programs are open from mid-January through the tax filing deadline, which will be April 15, 2014.
4.    Volunteer sites are located in communities throughout the nation. You’ll find them in neighborhood centers, libraries, schools, shopping malls and other convenient locations. VITA and TCE sites offer free electronic filing for both federal and state tax returns.
5.    Veteran and non-veteran volunteers may be able to help military personnel and their families.
6.    As a volunteer, you become part of a program that has helped people file tax returns at no charge for more than four decades. With VITA and TCE, you do make a difference. It’s people helping people. It’s that simple.

Additional information about becoming a VITA or TCE volunteer is available on IRS.gov. Type the key words “tax volunteer” in the search box to read more and to submit Form 14310, VITA/TCE Volunteer Sign Up, by email through the IRS website.