ADVISORY/Last Minute Tax Tips from the GE Center for Financial Learning.

Business Editors

ADVISORY...for Thursday (April 3)

--(BUSINESS WIRE)

GE Center for Financial Learning

WHAT: With just a few days until April 15, here are some last minute
    tips to help ease the pain by reducing the tax bite, compiled by
    Ginita Wall, advisor to the GE Center for Financial Learning
    (www.financiallearning.com).

    Don't rush. Just because you are filing at the last minute, don't
    get flustered and overlook deductions. Take time to review last
    year's activity to be sure you claim all the deductions to which
    you are entitled.

    Deduct points. If you bought a new house last year, the points you
    paid to acquire the mortgage are deductible, as are interest and
    property taxes. If you refinanced your house last year, the points
    you paid must be written off over the length of the loan (on a
    30-year loan, you can deduct 1/30 each year). Be sure to deduct
    any remaining unamortized points from the prior loan when you
    refinance (unless you refinance with the same lender).

    Educate yourself. If you spent money on education, you're in luck.
    If you were a full- or half-time student pursuing a degree, and
    your income is under $51,000 if single ($102,000 if married filing
    jointly), you can claim the Hope Credit for up to $2,000 of
    tuition you pay during the first two years of college. The
    Lifetime Learning Credit is available for up to $5,000 of tuition
    in 2002, and you don't have to be pursuing a degree.

    Deduct job-hunting expenses. You can deduct all the expenses of
    hunting for a new job, even if you didn't find one. This doesn't
    apply to the cost of finding your first job, or changing careers.

    Claim child care expenses. You can get credit for the first $3,000
    of expenses ($6,000 if more than one child) for caring for a child
    while you work or go to school. Expenses include nursery school,
    private kindergarten, after school programs and day care. If only
    one spouse works, you can still take the credit if the other
    parent is a full-time student or is disabled.

    Deduct your work expenses. If you spend money for business and you
    aren't reimbursed, you can claim a deduction. Toting up the cost
    of using your car to run errands, supplies, business dues, and so
    forth, can add up to a healthy deduction.

    Invest in an IRA. If you aren't covered by a retirement plan at
    work, you can deduct $3,000 if you invest by April 15. (If you are
    50 or older, you can contribute another $500 over the regular
    $3,000 limit.) If you have a retirement plan at work, your
    deduction for IRA contributions phases out when your income is
    between $34,000 and $44,000 for singles ($54,000 and $64,000 for
    married filing jointly).

    Don't blow it off. Even if you don't owe taxes, file a tax return
    if you are due a refund of withheld income taxes. If you wait more
    than two years to file, the IRS is not required to issue you a
    check.

    Extend if you must. If you file for an extension by April 15,
    you'll have until August 15 to file your return. But that
    extension doesn't extend the time to pay your taxes - send in what
    you owe with the extension to avoid penalties for late payment of
    tax.

    File even if you can't pay. If you owe taxes, send in what you can
    with the return, and the IRS will bill you for the rest. You can
    use Form 9465 to ask to make monthly installment payments, but
    you'll still owe interest and possibly late payment penalties.

    Invest your refund. If you filed early and are getting a tax
    refund, consider putting part of that refund into a Roth IRA. You
    have until April 15 to put up to $3,000 into a Roth IRA for last
    year ($3,500 if you are age 50 or older at the end of the year),
    and you can contribute $3,000 (or $3,500 if you are age 50 or
    over) for 2003 as well. Your contributions aren't deductible, it's
    true, but the funds won't be taxable when you withdraw them at
    retirement. (Roth IRA contributions are limited to those with
    income of under $110,000 for single or head of household ($160,000
    for married filing jointly).

WHO: Ginita Wall is an advisor to the GE Center for Financial Learning
    (www.financiallearning.com) and co-founder of the Women's
    Institute for Financial Education (WIFE). She has been named as
    one of the top 200 financial advisors in the country by Worth
    Magazine and is listed in Who's Who in Finance. Ginita Wall is a
    recognized expert in providing forensic accounting and financial
    guidance to men and women facing financial changes.