Important Reminders

Extension of time to file. You can get an automatic 4-month extension if, by April 16, 2001, you either file Form 4868 or pay part or all of the tax you expect to owe for 2000 electronically by credit card. For details, see Form 4868.

Earned income credit. The amount you can earn and still qualify for the credit has increased for 2000. The amount you earn must be less than $10,380 with no qualifying children, $27,413 with one qualifying child, and $31,152 with two or more qualifying children. See Earned Income Credit, later.

Child tax credit. You may be able to claim a child tax credit of up to $500 for each of your qualifying children under the age of 17. See Child Tax Credit, later.

Education benefits. The following benefits are specifically for higher education expenses.

Hope credit. You may be able to claim a tax credit of up to $1,500 for each eligible student.

Lifetime learning credit. For qualified tuition and related expenses paid during the tax year, you may be able to claim a tax credit of up to $1,000 for all students. However, you cannot take both the Hope credit and the lifetime learning credit for the same student in the same year.

Education IRAs. You may be able to make nondeductible contributions of up to $500 to an education IRA for a designated beneficiary under age 18.

Interest on student loans. You may be able to claim a deduction for interest paid on a qualified student loan. For 2000, the maximum deduction is $2,000.

For more information, see Publication 970, Tax Benefits for Higher Education.

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