2 New Education Credits Are a Big Hit on IRS’ Web Site

New education credits may be among the most popular tax changes this year, if the files downloaded at the IRS’ Web site are any indicator.

In addition to the perennially popular forms such as the 1040 and the 1040EZ, taxpayers are nabbing Form 8863--Hope and Lifetime Learning credits, which offer taxpayers a break for tuition and other education expenses, said Ted Meyer, chief technology officer for the IRS’ Los Angeles District. The credits, created in 1997 but available for the first time in 1998, allow taxpayers to take as much as $1,500 off their tax bills. The credits are available to single filers with adjusted gross incomes under $50,000 and married filers with incomes under $100,000.

The IRS’ site is proving more popular than ever this year. Downloads from https://www.irs.ustreas.gov are up nearly 400% from last year, with 10.9 million forms downloaded in January alone, Meyer said.

The most popular forms and publications downloaded so far, in order: Form 1040, Instructions for Form 1040, the 1998 Tax Table and Tax Rate Schedule, Form 1040EZ, Form 8863 Education Credits, Instructions for Form 1040EZ, Form 1040--Schedules A and B, 1999 Form W-4, Publication 17--Your Federal Income Tax (an overall guide to tax preparation) and Form 1040A.