Higher Education Tax Credits Available For Certain Taxpayers

Tax credits can help offset the cost of higher education

Whether it’s online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help offset these costs. These credits reduce the amount of tax someone owes. If the credit reduces tax to less than zero, the taxpayer could even receive a refund.

Taxpayers who pay for higher education in 2020 can see these tax savings when they file their tax return next year. If taxpayers, their spouses or their dependents take post-high school coursework, they may be eligible for a tax benefit.

There are two credits available to help taxpayers save money on schooling, the American opportunity tax credit and the lifetime learning credit. Taxpayers use Form 8863, Education Credits, to claim the credits.

To be eligible to claim either of these credits, a taxpayer or a dependent must have received a Form 1098-T from an eligible educational institution. There are exceptions for some students.

Here are some key things taxpayers should know about each of these credits.

The American opportunity tax credit is:

• Worth a maximum benefit of up to $2,500 per eligible student.: 100% of the first $2,000 in qualified expenses; 25% of the next $2,000 of qualified expenses.

• Only for the first four years at an eligible college or vocational school.

• For students pursuing a degree or other recognized education credential.

• 40% of the credit is refundable for most taxpayers.

• The catch: The credit is phased out at modified adjusted gross income of $160K to $180K (married filing jointly) or $80K to $90K (filing single). You can’t claim the credit if you are claimed as a dependent on another person’s tax return.

The lifetime learning credit is:

• Worth a maximum benefit of up to $2,000 (20% of the first $10K of qualified expenses) per tax return, per year, no matter how many students qualify.

• Available for all years of postsecondary education and for courses to acquire or improve job skills.

• Available for an unlimited number of tax years.

• The credit is non-refundable, meaning, if you only receive the credit to the extent you owe taxes.

• The catch: The credit is phased out at modified adjusted gross income of $116K to $136K (married filing jointly) and $58K to $68K (filing single). You can’t claim the credit if you are claimed as a dependent on another person’s tax return.

More information about these and other federal tax credits at www.irs.gov/credits-deductions-for-individuals.

IRS Is Sending Interest Payments Averaging $18 to 13.9 Million Taxpayers This Week

13.9 million Americans to receive IRS tax refund interest; Taxable payments to average $18

This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds.

The interest payments, averaging about $18, will be made to individual taxpayers who filed a 2019 return by this year’s July 15 deadline and either received a refund in the past three months or will receive a refund. Most interest payments will be issued separately from tax refunds.

In most cases, taxpayers who received their refund by direct deposit will have their interest payment direct deposited in the same account. About 12 million of these payments will be direct deposited.

Everyone else will receive a check. A notation on the check − saying “INT Amount” − will identify it as a refund interest payment and indicate the interest amount.

By law, these interest payments are taxable and taxpayers who receive them must report the interest on the 2020 federal income tax return they file next year. In January 2021, the IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10.

This provision is different from the long-standing 45-day rule, generally requiring the IRS to add interest to refunds on timely-filed refund claims issued more than 45 days after the return due date.

Instead, this year’s COVID-19-related July 15 due date is considered a disaster-related postponement of the filing deadline. Where a disaster-related postponement exists, the IRS is required, by law, to pay interest, calculated from the original April 15 filing deadline, as long as an individual files a 2019 federal income tax return by the postponed deadline − July 15, 2020, in this instance. This refund interest requirement only applies to individual income tax filers − businesses are not eligible.

Interest is paid at the legally prescribed rate that is adjusted quarterly. The rate for the second quarter ending June 30 was 5%, compounded daily. Effective July 1, the rate for the third quarter dropped to 3%, compounded daily.

Where the calculation period spans quarters, a blended rate applies, consisting of the number of days falling in each calendar quarter. No interest will be added to any refund issued before the original April 15 deadline.

For more information, visit IRS.gov.

Naru Bento Coming Soon to Janss Marketplace in Thousand Oaks

A new eatery called Naru Bento is "coming soon" to Janss Marketplace in the former Subway location, next to one of my favorite boba places in town, Matcha. No other details at this time. Bento meals usually include rice or noodles, fish or meat, veggies and other items.

Compilation of soon to be opening eateries and recently opened eateries throughout Ventura County at THIS LINK.

Shark Seen in the Skies of Oxnard

As if we didn’t have enough going on already this year…pandemic, heat wave, mass unemployment, murderous hornets, Kobe, looting…now we have our own Sharknado. Seen in the skies yesterday in Ventura County.

What’s next? Locust or earthquake?

Reminds me of the bunny cloud formation seen here from the Conejo Valley a couple years ago.

And more recently this bunny cloud seen in the Conejo Valley.

Construction of ALDI at Janss Marketplace in Thousand Oaks Finally Underway

Former Toys R Us store wall taken down as construction gets underway.

It has been just under 13 months since we first announced that ALDI is slated to open at the former Toys R Us store at Janss Marketplace. Finally, we’re seeing some activity.

Last month, ALDI announced it had opened its 2,000th store in the U.S. and plans to open 70 new stores by the end of 2020. ALDI anticipates becoming the third largest grocery retailer by store count by the end of 2022.

Mile Stretch of State Street in Santa Barbara Closed to Vehicular Traffic

Since May 22, State Street between Sola Street and Haley Street in Downtown Santa Barbara has been closed to vehicular traffic. This has allowed restaurants to expand their outdoor seating options during the pandemic.

There’s plenty of parking in the adjoining streets and parking lots.

Bicyclists are allowed in this promenade area, but must ride at a safe pace.

Wear your masks and enjoy your visit!

Learn more at www.downtownsb.org.

"Watch for Wild Animals" Signs on State Route 23 Between Thousand Oaks, Moorpark

You may have noticed these Caltrans "Watch for Wild Animals" signs placed in the north/southbound directions of the State Route 23 between Thousand Oaks and Moorpark. According to Caltrans District 7, the signs were placed as part of a mitigation plan after a road-kill study done prior to widening of the highway.

Caltrans counted 222 road-kill in a three year study and decided to do something about it, including setting up 12 one-way wildlife gates, cleaning out culverts to allow for animals to cross underneath the highway, increasing the height of fencing to prevent animals from hopping over, and placing these signs to alert motorists.

Santa Barbara Museum of Natural History Sea Center to Open on Weekends Beginning August 15th

The Santa Barbara Museum of Natural History Sea Center on Stearns Wharf has received permission to open its outdoor spaces to the public. Starting this weekend, it will be open Saturday and Sunday, noon–4:00 PM.

The Wet Deck will be open for exploring life beneath Stearns Wharf and outside you'll be able to touch friendly Swell Sharks, sea anemones, sea stars, and other animals from the Center’s popular Intertidal Wonders exhibit.

Daily activities at the Museum (including visits from Sea Center experts and live animals) will continue through August. Check our calendar to see what's happening on which days.

Tickets to the Sea Center are $7.

www.sbnature.org/visit/hours

Main Street Moves Downtown Ventura Street Closures Continue through September 14th

UPDATE: Main Street Moves has continued to operate post-pandemic and in its November 2024 meeting, Ventura City Council voted to keep the year-round street closure on an ongoing basis. Visit https://downtownventura.org/moves for more information.

Since June 16th, Downtown Ventura has closed its streets to expand outdoor dining and shopping as part of its Main Street Moves launch. This will continue through September 14th.

The City of Ventura in partnership with Downtown Ventura invites the community to shop, sip, snack, and stroll safely in the historic streets of Downtown Ventura as part of “Main Street Moves .”

Five blocks in historic Downtown Ventura are closed to vehicular traffic to allow more space for adjacent businesses to expand operations to help maintain safe physical distancing requirements. Main Street Moves features amenities including live music, handwashing stations, sanitation efforts, temporary ADA restroom facilities, additional tables and chairs, and bike racks to accommodate 140 bikes.

Closures are in place along four blocks on Main Street, between Fir and Palm Streets, and one block of California Street, between Santa Clara and Poli Streets. During street closures, barricades will be in place to ensure visitors' safety.

Businesses interested in participating in the program must continue to follow Ventura County Public Health’s guidelines and are responsible for submitting an application for expansion onto public or private property. The 30-day program will be reevaluated to determine if additional extension time is required. For City permit application information, visit the City’s website or click here .

To learn more about Main Street Moves or for a map of all participating businesses, visit www.cityofventura.ca.gov/CivicAlerts.aspx?AID=317.