1.

Meredith is preparing to send her daughter, Zola, to college in Boston this fall. Zola has several scholarships, but the family will also be paying for part of Zola's tuition, most of her books, and Zola's room and board. Meredith has asked you to explain how scholarships and educational expenses influence her tax return. Be sure to consider income, exclusions, and potential credits. At this point, Meredith is trying to avoid student loans, but it wouldn't hurt to explain how those are handled, as well.

2.

Your neighbor asked you to help them understand the tax implications of owning a business. They are considering opening a delivery business with a fleet of delivery vans and a warehouse for package storage. Assuming they plan to operate the business as a sole proprietorship, what specific advice would you give them about how this business might influence their tax return?

(HINT: How does a sole proprietorship influence an individual tax return? Are there any additional taxes, credits, or deductions that are associated with business activities? What types of expenses do you think will be most common for a delivery business?)