The Whitlock Company, CPAs and Consultants, Springfield Missouri

Many back-to-school college students and their families are facing the toughest time in years, in meeting the costs of higher education due to the recent economic downturn. In an attempt to face this challenge, Congress recently passed some tax relief for college students and families that, together with scholarships, loans and work-study grants, can provide invaluable lifelines this year. The tax relief is twofold: the new American Opportunity Tax Credit and more liberal withdrawal rules for Section 529 plans to cover technology needs. Both tax provisions are temporary – for 2009 and 2010 only – but likely will be extended in some form if the need continues.

If you purchase an all-electric Tesla Roadster (base price $109,000) you can receive up to a $7,500 tax credit under the American Recovery and Reinvestment Act of 2009. Read about this and other Green Energy Tax incentives in the new tax act summerized in the latest Journal of Accountancy article.