How does ye olde federal government go about deciding on income limits for the claiming of tax credits? And is not a single formula for the whole nation inherently unfair to urbanites?
Case in point: The Lifetime Learning Credit.
Sounds great, right? So an individual can, say, go back to school in middle age to buff up her resume and claim a tax credit for 20% of the tuition. Encouraging continuing education is surely in Uncle Sam’s best interests, as better educated citizens pay more taxes in the long run.
Where did those numbers come from? Those salaries might be sky-high in Upper Podunk, but in major metropolitan (read that: high cost-of-living) areas they are barely middle class.
On a related note, I’m working on an article about saving for college, which is admittedly the only reason I know about the Lifetime Learning Credit. If y’all wouldn’t mind sharing, please tell me if and how you are saving for your kids’ college educations. Thanks.