There is a deduction for up to 60 months of interest paid on student loans. The most you can deduct in 1998 will be $1,000.00 and goes up to $2,500.00 in 2001. It can also be used for financing old and new loans.

The Hope Scholarship Tax Credit was also created by the new tax law. It is worth up to $1,500.00 per year. You also have up to $1,000.00 per year over the course of your lifetime tax credit for college education.

You can use these tax breaks to borrow for college expenses that qualify for education credit. You can deduct the interest paid on the loan. Ultimately, you get a tax credit AND a deduction for the same money! For those of you in school, be sure to ask your tax preparer about the new laws on education expenses.

In other tax news, a recent court case ruling determined that the IRS considers your place of WORK (rather than the location of your home) to be your "residence." In the case, a man took a teaching position in another town. He worked there Monday through Friday and returned home to his family each weekend. When he tried to deduct his expenses, the court ruled in favor of the IRS's assertion that to reside in a location away from one's full-time, permanent job is a preference therefore not deductible. Anyone considering a job on the pipeline, for example, who wishes to maintain a residence in Ketchikan is advised to check with a tax professional.

WE ARE NOT TAX EXPERTS: please check with a tax professional who can tell you how the above information applies to your individual circumstances.