Regular IRA vs Roth IRA

The three main differences between a Roth and a regular IRA are the following: 1. You get a tax deduction for a regular IRA contribution but not for a Roth contribution. 2. You have to stop making regular IRA contributions at age 70 and 1/2 but there is no age restriction on Roth contributions. 3. You have to start to take distributions out of your regular IRA after age 70 and 1/2 but there is no such requirement for a Roth. Which is better? It all depends on your priorities.

Georgia Section 529 Plan

You can contribute up to $2,000 per child for college to a section 529 Georgia plan and take a deduction on your Georgia tax return. You don't get a Federal deduction but the funds grow tax free. You can contribute to any other state's 529 plan too, but you won't get the GA deduction then. You deduct the amounts on schedule 1 line 8 on the GA return for  Georgia higher education savings plan.

Publicly Traded Partnerships (PTPs)

Your broker may invest in a PTP for you which are subject to the passive activity rules which can limit the deduction of losses. PTPs are even under more restrictive rules concerning the deductibility of losses. You can only deduct losses against future income from that specific PTP and not against other PTPs or other  passive income. If you sell the PTP in a taxable transaction, then you can deduct all suspended losses.

Child Care Credit

You can get $1,200 in a tax credit if you have at least $6,000 in qualifying expenses and two qualifying children ( generally under age 13). The following expenses qualify: preschool for children under the level of kindergarten, before or after school care for those children in kindergarten and higher grades, day camp costs, and  babysitting fees. Overnight camp does not qualify. In order to get the credit, you have to provide the name, address, and Federal identification number of all child care providers on your tax return.