The partners and staff have taken the time to understand the company and in doing so, have been able to give sound business advice when called upon.

That, I believe is their biggest strength, knowing their clients and responding to their needs.

ANTHONY J. DIVITA, III, DiGioia-Suburban Excavating, LLC

Children and Education

Child Tax Credit

For 2010, the Child Tax Credit is worth $1,000 for each qualifying child who is under age 17 at the end of the calendar year and who qualifies as a dependent. The Child Tax Credit is in addition to the child's dependency exemption.

The credit begins to phase out when modified AGI exceeds $110,000 if married filing jointly, $55,000 if married filing separately and $75,000 if single filer, head of household or
qualifying widow(er).

Dependent Care Credit

If you are a parent who must pay for the care of a dependent under age 13, whom you also claim as a dependent, while you work or look for work, you may be eligible for a tax credit between 20% and 35% of qualifying expenses (up to $2,100). You must have earned income to receive the credit.

Also, this credit is not restricted to child-related care costs. If you pay someone to look after an incapacitated dependent of any age, such as a parent or disabled family member, you may also be eligible for this Tax break.

The maximum amount of expenses on which the credit can be claimed is $3,000 for the care of one dependent or $6,000 for the care of two or more. The value of qualifying day care provided by your employer under a written, non-discriminatory plan generally is not
taxable up to $5,000 ($2,500 if married filing separately).

The American Opportunity Tax Credit

The American Opportunity Tax Credit is available to each eligible student and for the first four years of college or other postsecondary school that leads to a degree, certificate or other recognized educational credential. The maximum credit is $2,500 per student for each year and 40% of the credit is refundable -that is, it can reduce the taxpayer's liability
below zero.

The credit applies to 100% of the first $2,000 of costs and 25% of the next $2,000 of costs. It phases out at modified AGI levels between $160,000 and $180,000 (married filing jointly), and $80,000 and $90,000 (other filers).

If modified AGI is less than the $160,000 and $80,000 thresholds, the full credit
can be claimed. However, if it is equal to or greater than the $180,000 and $90,000
thresholds, the credit is not available. This credit is allowed against the AMT.