Who Makes Out

Who would qualify for some of the proposed tax changes, and how, in President Clinton’s budget:

College tax credit: Families would get a $1,500 tax credit for each student in post-secondary education for one year. If at least a B average is maintained by the student and he or she is not convicted of a drug crime, the family would qualify for a $1,500 tax credit a second year. Families not earning enough to pay $1,500 in income tax would not get the full credit. Credit would be phased out for taxpayers filing a joint return with adjusted gross income between $80,000 and $100,000. Taxpayers with incomes over $100,000 would not quality at all.

College tax deduction: As an alternative to the tax credit, or when the credit expires, families could deduct tuition and fees for postsecondary education or job training. Each family could qualify for only one deduction each year. The maximum deduction would start at $5,000, rising to $10,000 in 1999. It would be subject to same upper-income limits as the tax credit.

Child tax credit: For each child under 13. Worth $300 a year in 1997-99 and $500 in 2000. It would be phased out for taxpayers with adjusted gross income between $60,000 and $75,000.

Expanded IRAs: Early withdrawal from Individual Retirement Accounts would be exempted from the usual 10 percent tax if the money is used to buy a first home, for higher education or for living costs if unemployed.

Tax break on home sales: Married taxpayers filing jointly could exclude up to $500,000 of capital gains on the sale of a principal residence. Single filers could exclude $250,000. This generally could be done every two years.

Higher air travel taxes: The government would reinstate the 10 percent tax on domestic air passenger travel, $6 per person tax on international departures and 6.25 percent tax on air freight transportation.