Family Tax Credit and Other Issues

So far, we've discussed most of the tax issues that affect you in your capacity as a business owner, an employee, an investor, a homeowner, or a retiree.

Now, we're going to tie up the loose ends by discussing a number of tax issues that pertain primarily to your family situation. First, we'll discuss the treatment of alimony, which is deductible by the person who pays it and is taxable to the person who receives it.

Next, we're going to cover a number of special tax breaks based on your family situation, including the $1,000-per-child tax credit, the adoption expense exemption and credit, and the credit for the elderly and the disabled.

We'll also discuss the tax breaks for education, including the American Opportunity credit ( originally named the Hope Scholarship credit), the Lifetime Learning credit, education savings accounts, the tuition and fees deduction and the exclusion of interest on certain student loans. We'll conclude with a discussion of the earned income credit for lower-income families and individuals.