Reduce Cost of College With Lifetime Learning Credits

Lifetime Learning Credit

For 2015, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American Opportunity Credit and the Lifetime Learning Credit.

TAX BENEFIT - For the tax year, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for all eligible students. There is no limit on the number of years the Lifetime Learning Credit can be claimed for each student. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The Lifetime Learning Credit is a nonrefundable credit, so if the credit is more than your tax the excess will not be refunded to you. Your allowable Lifetime Learning Credit is limited by the amount of your income and the amount of your tax.

ONLY ONE EDUCATION CREDIT ALLOWED - For each student, you can elect for any year only one of the credits. For example, if you elect to claim the Lifetime Learning Credit for a child on your 2015 tax return, you cannot, for that same child, also claim the American Opportunity Credit for 2015. If you are eligible to claim the Lifetime Learning Credit and you are also eligible to claim the American Opportunity Credit for the same student in the same year, you can choose to claim either credit, but not both. If you pay qualified education expenses for more than one student in the same year, you can choose to claim certain credits on a per-student, per-year basis. This means that, for example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for another student in the same year.

CLAIMING THE CREDIT - Generally, you can claim the Lifetime Learning Credit if all three of the following requirements are met.

• You pay qualified education expenses of higher education.
• You pay the education expenses for an eligible student (a student who is enrolled in one or more courses at an eligible educational institution).
• The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.

Table 3-1. Overview of the Lifetime Learning Credit for 2015

• Maximum credit
• Up to $2,000 credit per return
• Limit on modified adjusted gross income (MAGI)
• $128,000 if married filing jointly;
• $64,000 if single, head of household, or qualifying widow(er)
• Refundable or nonrefundable
• Nonrefundable-credit limited to the amount of tax you must pay on your taxable income
• Number of years of postsecondary education
• Available for all years of postsecondary education and for courses to acquire or improve job skills
• Number of tax years credit available
• Available for an unlimited number of tax years
• Type of program required
• Student does not need to be pursuing a program leading to a degree or other recognized education credential
• Number of courses
• Available for one or more courses
• Felony drug conviction
• Felony drug convictions do not make the student ineligible
• Qualified expenses
• Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment)
• Payments for academic periods
• Payments made in 2015 for academic periods beginning in 2015 or beginning in the first 3 months of 2015

CANNOT CLAIM THE CREDIT - You cannot claim the Lifetime Learning Credit for 2015 if any of the following apply.

• Your filing status is married filing separately.
• You are listed as a dependent on another person's tax return.
• Your modified adjusted gross income (MAGI) is $64,000 or more ($128,000 or more in the case of a joint return).
• You (or your spouse) were a nonresident alien for any part of 2015 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. More information on nonresident aliens can be found in Publication 519.
• You claim the American Opportunity Credit or a Tuition and Fees Deduction for the same student in same year.

QUALIFYING EXPENSES - The Lifetime Learning Credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the credit is allowed for qualified education expenses paid in same year for an academic period beginning in the same year or in the first 3 months of the following year. For example, if you paid $1,500 in December 2015 for qualified tuition for the spring 2016 semester beginning in January 2016, you may be able to use that $1,500 in figuring your 2015 credit.

Academic period. An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period.

Paid with borrowed funds. You can claim a Lifetime Learning Credit for qualified education expenses paid with the proceeds of a loan. You use the expenses to figure the Lifetime Learning Credit for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account.

Student withdraws from class (es). You can claim a Lifetime Learning Credit for qualified education expenses not refunded when a student withdraws.
For purposes of the Lifetime Learning Credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills.

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution. Certain educational institutions located outside the United States also participate in the U.S. Department of Education's Federal Student Aid (FSA) programs (such as Oxford University).

Related expenses. Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance.

NO DOUBLE-DIPPING - You cannot do any of the following.

• Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a Lifetime Learning Credit based on those same expenses.
• Claim a Lifetime Learning Credit in the same year that you are claiming a tuition and fees deduction for the same student.
• Claim a Lifetime Learning Credit and an American Opportunity Credit based on the same qualified education expenses.
• Claim a Lifetime Learning Credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell Education Savings Account (ESA) or Qualified Tuition Program (QTP).
• Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer.

For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. The result is the amount of adjusted qualified education expenses for each student.

Tax-free educational assistance. For tax-free educational assistance received in 2015, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Some tax-free educational assistance received after 2015 may be treated as a refund of qualified education expenses paid in 2015. This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2015 for qualified education expenses paid on behalf of a student in 2015 (or attributable to enrollment at an eligible educational institution during 2015).
Tax-free educational assistance includes:

• The tax-free part of scholarships and fellowship grants
• Pell grants (Scholarships, Fellowship Grants, Grants, and Tuition Reductions)
• Employer-provided Educational Assistance
• Veterans' Educational Assistance
• Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.

Generally, any scholarship or fellowship grant is treated as tax free. However, a scholarship or fellowship grant is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship grant is received) and either of the following is true.

• The scholarship or fellowship grant (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses.
• The scholarship or fellowship grant (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses.

You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received.

Refunds. A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Some tax-free educational assistance received after 2015 may be treated as a refund.

Refunds received in 2015. For each student, figure the adjusted qualified education expenses for 2015 by adding all the qualified education expenses for 2015 and subtracting any refunds of those expenses received from the eligible educational institution during 2015.

Refunds received after 2015 but before your income tax return is filed. If anyone receives a refund after 2015 of qualified education expenses paid on behalf of a student in 2015 and the refund is paid before you file an income tax return for 2015, the amount of qualified education expenses for 2015 is reduced by the amount of the refund.

Refunds received after 2015 and after your income tax return is filed. If anyone receives a refund after 2015 of qualified education expenses paid on behalf of a student in 2015 and the refund is paid after you file an income tax return for 2015, you may need to repay some or all of the credit.

Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2015 or any refund of your qualified education expenses paid in 2015 is received after you file your 2015 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2015 by reducing the expenses by the amount of the refund or tax-free educational assistance. You then refigure your education credit(s) for 2015 and figure the amount by which your 2015 tax liability would have increased if you had claimed the refigured credit(s). Include that amount as an additional tax for the year the refund or tax-free assistance was received.

If you pay qualified education expenses in 2015 for an academic period that begins in the first 3 months of 2015 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2015 instead of reducing your expenses for 2015.
Amounts that do not reduce qualified education expenses. Do not reduce qualified education expenses by amounts paid with funds the student receives as:

• Payment for services, such as wages,
• A loan;
• A gift;
• An inheritance; or
• A withdrawal from the student's personal savings.

Do not reduce the qualified education expenses by any scholarship or fellowship grant reported as income on the student's tax return in the following situations.

• The use of the money is restricted, by the terms of the scholarship or fellowship grant, to costs of attendance (such as room and board) other than qualified education expenses, Scholarships, Fellowship Grants, Grants, and Tuition Reductions.
• The use of the money is not restricted.

COORDINATION WITH PELL GRANTS AND OTHER SCHOLARSHIPS - You may be able to increase your Lifetime Learning Credit when the student (you, your spouse, or your dependent) includes certain scholarships or fellowship grants in the student's gross income. Your credit may increase only if the amount of the student's qualified education expenses minus the total amount of scholarships and fellowship grants is less than $10,000. If this situation applies, consider including some or all of the scholarship or fellowship grant in the student's income in order to treat the included amount as paying nonqualified expenses instead of qualified education expenses. Nonqualified expenses are expenses such as room and board that are not qualified education expenses such as tuition and related fees.

Scholarships and fellowship grants that the student includes in income do not reduce the student's qualified education expenses available to figure your Lifetime Learning Credit. Thus, including enough scholarship or fellowship grant in the student's income to report up to $10,000 in qualified education expenses for your Lifetime Learning Credit may increase the credit by enough to increase your tax refund or reduce the amount of tax you owe even considering any increased tax liability from the additional income. However, the increase in tax liability as well as the loss of other tax credits may be greater than the additional Lifetime Learning Credit and may cause your tax refund to decrease or the amount of tax you owe to increase. Your specific circumstances will determine what amount, if any, of scholarship or fellowship grant to include in income to maximize your tax refund or minimize the amount of tax you owe. The scholarship or fellowship grant must be one that may (by its terms) be used for nonqualified expenses.

Finally, the amount of the scholarship or fellowship grant that is applied to nonqualified expenses cannot exceed the amount of the student's actual nonqualified expenses that are paid in the tax year. This amount may differ from the student's living expenses estimated by the student's school in figuring the official cost of attendance under student aid rules. The fact that the educational institution applies the scholarship or fellowship grant to qualified education expenses, such as tuition and related fees, does not prevent the student from choosing to apply certain scholarships or fellowship grants to the student's actual nonqualified expenses. By making this choice (that is, by including the part of the scholarship or fellowship grant applied to the student's nonqualified expenses in income), the student may increase taxable income and may be required to file a tax return. But, this allows payments made in cash, by check, by credit or debit card, or with borrowed funds such as a student loan to be applied to qualified education expenses.

Something to consider is whether you will benefit from applying a scholarship or fellowship grant to nonqualified expenses will depend on the amount of the student's qualified education expenses, the amount of the scholarship or fellowship grant, and whether the scholarship or fellowship grant may (by its terms) be used for nonqualified expenses. Any benefit will also depend on the student's federal and state marginal tax rates as well as any federal and state tax credits the student claims. Before deciding, look at the total amount of your federal and state tax refunds or taxes owed and, if the student is your dependent, the student's tax refunds or taxes owed. For example, if you are the student and you also claim the earned income credit, choosing to apply a scholarship or fellowship grant to nonqualified expenses by including the amount in your income may not benefit you if the decrease to your earned income credit as a result of including the scholarship or fellowship grant in income is more than the increase to your Lifetime Learning Credit as a result of including this amount in income.

NON-QUALIFYING EXPENSES - Qualified education expenses do not include amounts paid for:

• Insurance;
• Medical expenses (including student health fees);
• Room and board;
• Transportation; or
• Similar personal, living, or family expenses.

This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.

Sports, games, hobbies, and noncredit courses. Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify.

Comprehensive or bundled fees. Some eligible educational institutions combine all of their fees for an academic period into one amount. If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. To help you figure your Lifetime Learning Credit, the student should receive Form 1098-T. Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2015. An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. However, the amounts on Form 1098-T, boxes 1 and 2, might be different from what you paid. When figuring the credit, use only the amounts you paid or are deemed to have paid in 2015 for qualified education expenses.

In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student's name, address, and taxpayer identification number.

CLAIMING DEPENDENT'S EXPENSES - If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both, can claim a Lifetime Learning Credit for your dependent's expenses for that year. For you to claim a Lifetime Learning Credit for your dependent's expenses, you must also claim an exemption for your dependent. You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c.

Expenses paid by dependent. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Include these expenses when figuring the amount of your Lifetime Learning Credit. Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent.

Expenses paid by you. If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the Lifetime Learning Credit. If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the Lifetime Learning Credit.

Expenses paid by others. Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. If you claim an exemption on your tax return for the student, you are considered to have paid the expenses.

Tuition reduction. When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student.

FIGURING THE CREDIT - The amount of the Lifetime Learning Credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. The maximum amount of Lifetime Learning Credit you can claim for 2015 is $2,000 (20% × $10,000). However, that amount may be reduced based on your MAGI.
The amount of your Lifetime Learning Credit is phased out (gradually reduced) if your MAGI is between $54,000 and $64,000 ($108,000 and $128,000 if you file a joint return). You cannot claim a Lifetime Learning Credit if your MAGI is $64,000 or more ($128,000 or more if you file a joint return).

Modified adjusted gross income (MAGI). For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return.

MAGI when using Form 1040A. If you file Form 1040A, your MAGI is the AGI on line 22 of that form.

MAGI when using Form 1040. If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any:
1. Foreign earned income exclusion,
2. Foreign housing exclusion,
3. Foreign housing deduction,
4. Exclusion of income by bona fide residents of American Samoa, and
5. Exclusion of income by bona fide residents of Puerto Rico.

Phase Out. If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863.
You figure the tentative Lifetime Learning Credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). The result is a $1,320 (20% x $6,600 eligible expenses) tentative credit.
Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. The numerator of the fraction is $128,000 (the upper limit for those filing a joint return) minus your MAGI. The denominator is $20,000, the range of incomes for the phase out ($108,000 to $128,000). The result is the amount of your phased out (reduced) Lifetime Learning Credit ($1,056).
$1,320 x ($128,000 - $112,000)/$20,000 = $1.056

Claiming the Credit - You claim the Lifetime Learning Credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Enter the credit on Form 1040, line 50, or Form 1040A, line 33.

Bristol's Best School in the Years After World War Two

Cotham Grammar school in the 1940s and 1950s was often referred to as Bristol's best school; it was certainly the jewel in the crown of the Bristol Education Committee which in those days administered free state education and awarded scholarships to university for all qualified students. It was the school that educated the Nobel Prize-winning physicists: Paul Dirac and Peter Higgs, and shared with Eton College the distinction of having three old-boys in the England cricket team. In the development of mind and body, Cotham Grammar School rivalled the best schools in the land.

Cotham possessed a state-of-the-art building and extensive grounds of historical interest, but its true glory lay in the quality of its teachers. The all-male team was led by Mr Woods, known by the boys as 'Splinter.' The Head Master was smaller than average, of slim build and white complexion. He maintained strict discipline and was both feared and respected, resorting occasionally to the use of the cane, but to the final-year science class he revealed a great breadth of knowledge, taking special lessons covering philosophy, economics and politics.

The deputy head master was Mr Hinton, a mathematician who also lectured at Bristol University. Rather more robust and verbose than the laconic head master, the bespectacled deputy played a full part in maintaining a benevolent but disciplined regime. The man who may have taught physics to Paul Dirac and almost certainly taught Peter Higgs was Mr Marsden, a wartime radar expert, who could explain the most complex concepts in slow precise steps that even the dullest boys could follow.

The senior chemistry master was Mr Harding, remembered as one of the friendlier teachers. He always took his packed lunch in the chemistry laboratory and invariably ate a banana, often advocating the fruit's nutritional benefits. Playing the violin in the school orchestra, Mr Harding strongly supported Mr Phillips, the teacher of religious knowledge, who served as conductor and manager. Known to the boys as Flop, Mr Phillips did sterling work in maintaining what was widely regarded as the best schools orchestra in the city and one which provided the backbone of the Bristol schools' orchestra.

The school did not only excel in music. Its Combined Cadet Corps, commanded by Major Statton proudly wore the uniform of the Gloucestershire Regiment, the 'Glorious Glosters' of Korea and many ancient conflicts. Its RAF section under Flight Lieutenant Wilkinson produced several boys who won Flying Scholarships and held private pilots licences while still at school. The Judo club under Jerry Hicks, the art master, was the first school judo club in Bristol and achieved distinction by beating the team of Bristol University. The school's prowess in rugby was recognised by a visit to the school by the entire New Zealand rugby team, the famous All-Blacks.

Cotham Grammar School strove for excellence in every area. It provided first-class free education to able students from all backgrounds, an elevator that lifted able children from the humblest homes to the greatest heights. It was swept away by the Wilson reforms of the 1960s, and one must wonder if its like will ever be seen again.

CIOs Need To Take Care Of Their Younger Workers

As the person in the CIO position, I'm pretty sure that by now you've come to realize that not all of the workers at your company are the same. It turns out that some of these workers need a little bit of extra help from your IT department. You might instinctively think that I'm talking about the company's older workers. However, that's not the case. I'm really talking about your younger workers. Study after study has shown that they are the ones who are most likely to make mistakes that will complicate your life.

The Problem With Young Workers And Security

I'm not exactly sure where to start to place the blame, but I think that the arrival of social networking has to take some of it. It is on these sites that many of your company's younger workers may start to feel more relaxed and comfortable. I mean, they are just talking with friends, right? It's this type of feeling that can lead them to do silly things like post their phone numbers and addresses. This is exactly the kind of information that the bad guys need in order to get to work.

A recent survey showed that younger workers are more likely to post too much personal information on social media sites and to respond to unsolicited email. What makes all of this risky behavior that much worse is that these workers are often accessing their social media sites from work and that can open a door for trojans to be downloaded onto your networks.

Identity Theft Is A Problem For Younger Workers

As though your younger workers didn't have enough problems while they are at work, it turns out that the misery that they've invited in may be waiting to follow them home. It turns out that they are more likely than any other group to end up having their identities stolen. The studies have shown that people who are between 18-24 are at the highest risk of having their identities stolen.

What this group of workers is forgetting to do is to take some very basic precautions. These include switching to electronic version of bills to eliminate paper trails, shredding documents, and installing anivirus / antispyware software and firewalls. What you need to realize as a CIO is that this generation of workers is very comfortable with IT technology - perhaps too comfortable! It's going to be your job to educate them on the dangers and risks that sharing too much personal information in any venue can cause. They're willing to learn if you are willing to teach them!

What Does All Of This Mean For You?

Because of the importance of information technology, CIOs are responsible for everyone who works at a company. As a result of various studies, it turns out that CIOs really should be spending more of their time looking after their younger workers. These are the workers who are the most likely to make silly security mistakes that will cost you both time and money.

Young workers are generally highly connected. This means that they may have multiple social media accounts. This provides attackers with a means of both discovering them and then attacking them. Due to the large amount of personal information that these younger workers share, it can be all too easy for them to fall victim to identity theft.

As the company's CIO you can't necessarily prevent any bad things from happening to your younger workers. However, you can take steps to help to keep them informed of the dangers that they are facing. Trying to look out for the best interests of your younger workers is a very important part of having the CIO job!

Pathological Skepticism From a Non-Scientist

Robert Todd Carroll is one of a growing band of non-scientists (he teaches philosophy) who believe they are qualified to tell us what we should and shouldn't believe, scientifically. That he has no scientific qualifications, or training, or professional experience, does not deter Carroll from his conviction that he is an authority on this subject and, in The Skeptic's Dictionary, he sets out to tell us ordinary people what we may and may not legitimately think.

This bogus-guru stance should be warning enough of what is to follow but, once he warms to his subject, Carroll's inhibitions disappear completely and he veers from the dogmatic to the preposterous in a hilarious display of scientific ignorance and prejudice. From a mountain of mistakes and misunderstandings, here are a few of his more entertaining errors.

Acupuncture Carroll says; "Scientific research... has failed to demonstrate that acupuncture is effective against any disease." Except for the scientific research that has demonstrated acupuncture is effective against some diseases and was published in peer-reviewed scientific journals more than a decade ago, such as Dundee, J.W., 1988, in Journal of the Royal Society of Medicine, Dundee, J.W., 1987, in British Journal of Anaesthesia, 59, p 1322. And Fry, E.N.S., 1986, in Anaesthesia, 41: 661-2. Had Carroll made even the slightest attempt to search the scientific literature he would have found these and many other references to well-conducted double-blind trials in which patients experienced measurable benefits in comparison with the placebo group.

Cryptozoology The Skeptic's Dictionary tells us that; "Since cryptozoologists spend most of their energy trying to establish the existence of creatures, rather than examining actual animals, they are more akin to PSI researchers than to zoologists. Expertise in zoology, however, is asserted to be a necessity for work in cryptozoology, according to Dr. Bernard Heuvelmans, who coined the term..." Had he read Dr Heuvelmans' book, Carroll would have learned that the discovery of new species is normal science and many are discovered each year. New species number hundreds amongst insects, and dozens among small mammals and reptiles. Discovery of large unknown mammals and reptiles is unusual but certainly not unknown or even rare. In 2002, for example, respected primatologist Dr Shelly Williams of the prestigious Jane Goodall Institute in Maryland, tracked and came face to face with a previously unknown species of great ape at Bili in the Congo, deep in the African jungle. The creatures stand some 6 feet tall and weigh up to 225 pounds. Dr Williams reported in New Scientist, "Four suddenly came rushing out of the bush towards me. These guys were huge and they were coming in for the kill. As soon as they saw my face, they stopped and disappeared."

Dermo-optical perception Carroll says; "Dermo-optical perception (DOP) is the alleged ability to 'see' without using the eyes. DOP is a conjurer's trick, often involving elaborate blindfolding rituals, but always leaving a pathway (usually down the side of the nose), which allows for unobstructed vision." The scientific view; Dr Yvonne Duplessis was appointed director of a committee to investigate Dermo-optical sensitivity. Her conclusion is, 'Controlled studies indicate support for the theory of dermo-optical sensitivity and perception.' Dr Duplessis's experiments have even led to a possible perfectly natural explanation. In her conclusions, she says, 'Thus these different methods show that the thermal feelings induced by visible colors are not subjective, as it is generally admitted, and that the infrared radiations, situated in a far infrared range. are acting on every part of the body. This gives us possible grounds for concluding that also during ordinary visual perception of colored surfaces a human eye reacts not only to rays of the visible spectrum but also to infrared radiation emitted by these surfaces.' More simply, Dr Duplessis's experiments appear to show that coloured surfaces reflect energy as heat as well as light and that the eye (like other parts of the human body) is to some extent sensitive to heat as well as to light -- a very much simpler explanation than Carroll's baseless inventions.

Extraterrestrials (UFOs, Flying Saucers) Carroll says "Edward U. Condon was the head of a scientific research team which was contracted to the University of Colorado to examine the UFO issue. His report concluded that 'nothing has come from the study of UFOs in the past 21 years that has added to scientific knowledge...further extensive study of UFOs probably cannot be justified in the expectation that science will be advanced thereby'." Carroll adds, "So far... nothing has been positively identified as an alien spacecraft in a way required by common sense and science. That is, there has been no recurring identical UFO experience and there is no physical evidence in support of either a UFO flyby or landing." Had Carroll troubled to actually read Condon's report he would have found this conclusion of Dr Condon's regarding photographs identified by the report as 'Case 46'; 'This is one of the few UFO reports in which all factors investigated, geometric, psychological, and physical appear to be consistent with the assertion that an extraordinary flying object, silvery, metallic, disk-shaped, tens of meters in diameter, and evidently artificial, flew within sight of two witnesses.' It is perfectly true that Edward Condon concluded that 'further extensive study of UFOs probably cannot be justified' but the reason he gave is that it is not possible to study fruitfully a phenomenon that occurs at random. He and his team emphatically did NOT conclude that "there is no physical evidence in support of either a UFO flyby or landing" - that is the conclusion of Carroll alone, and it is based purely on ignorance of the real facts as stated in Dr Condon's report.

Carl Jung Carroll says; "[Jung's] notion of synchronicity is that there is an acausal principle that links events having a similar meaning by their coincidence in time rather than sequentially... What evidence is there for synchronicity? None." Carroll carefully neglects to mention that the theory of synchronicity was proposed not by Jung alone but jointly with Wolfgang Pauli, who was Professor of Theoretical Physics at Princeton, a member of Niels Bohr's team that laid the foundations of Quantum Theory and who won the Nobel Prize in Physics in 1945. There thus exists a reasonable probability that the originator of synchronicity theory knew somewhat more about science than Carroll does. Asking 'what evidence is there?' for an explanatory theory that has been advanced specifically to account for previously unexplained evidence is a question even Homer Simpson would blush to ask.

Occult statistics Carroll says; "Legions of parapsychologists, led by such generals as Charles Tart and Dean Radin, have also appealed to statistical anomalies as proof of ESP." But, "Skeptics are unimpressed with occult statistics that assert improbabilities for what has already happened." Carroll's scientific illiteracy finally comes out into the open here. Even his fellow 'skeptics' in CSICOP would hesitate to assert that science may only cite statistics on probability in connection with events that have not yet happened! Probability theory deals with the mathematical calculation of the chances of an event taking place -- regardless of whether the event has taken place or not. The probability that a tossed coin will land heads is 50-50 or P=0.5. This is as true for a coin that has already been tossed as it is for one yet to be tossed. If someone were to toss 100 heads in a row having declared in advance their intention to make this happen, then the odds against such a series happening normally are so high as to merit scientific investigation to attempt to determine a cause other than chance. In the case of the experiments reported by Dean Radin in the respected physics journal Foundations of Physics, the odds against the results obtained in the Princeton Engineering Laboratory coming about by chance alone are one in 10 to the power of 35. For Carroll to ignore improbabilities of this magnitude is not being "skeptical" -- it is being in denial.

Remote viewing Carroll says; "The CIA and the U.S. Army thought enough of remote viewing to spend millions of taxpayers' dollars on research in a program referred to as 'Stargate'." Carroll scorns such trials because of the inaccuracy of some statements made by the subjects but, scientifically, the question is not how consistently accurate is remote viewing, but does it exist at all? There is unequivocal evidence that it does. A recently declassified CIA document details a remarkably accurate example, under controlled conditions, of remote viewing of a top-secret Russian base by Pat Price in 1974. Although Price made a lot of incorrect guesses about the target he was able to produce, with startling accuracy, engineering grade drawings of a unique 150-foot high gantry crane with six-foot high wheels running into an underground entrance. The existence of this massive structure, exactly as described, was later confirmed through satellite photography.

Spontaneous Human Combustion Carroll says; "While no one has ever witnessed SHC, several deaths involving fire have been attributed to SHC by investigators and storytellers." The slightest research would have revealed to Carroll that many cases of possible SHC were independently witnessed by reliable people. In some cases, the victims themselves survived to tell about their experiences. Cases include London Fire Brigade Commander John Stacey and his fire crew who reached the scene of a burning man within 5 minutes of receiving an emergency call, and the case of Agnes Phillips who burst into flames in a parked car in a Sydney suburb in 1998 and was pulled out by a passer-by. Many more similar examples of ignorance and prejudice could be quoted from The Skeptic's Dictionary, but would serve little purpose. It is already abundantly clear that Carroll's book is no dictionary but a private agenda, and that he himself is no skeptic but a knee-jerk reactionary to the new, the unexpected, the ambiguous and the anomalous.

Robert Todd Carroll is a perfect example of the phenomenon of pseudo-skepticism. Some academic professionals who are meticulously careful of fact in their normal professional life, suddenly throw off all reasoned restraint when it comes to so-called "debunking" of what they consider to be new age nonsense and feel justified in making as many careless and inaccurate statements as they please because they mistakenly imagine they are defending science against weirdos. The reality is that their irrational reaction arises from their own inability to deal scientifically with the new and ambivalent, even when (as in the case of dermo-optical perception) there is probably a simple natural explanation, or when (as in the case of the new Congo primate) it is simply unexpected and previously unknown to science.

This book is a stark warning to every student of science, logic and philosophy of what can happen when an otherwise rational person goes off on a personal crusade motivated by his own self-deluding prejudices.

Richard Milton is a freelance writer and journalist. He freelances for The Daily Telegraph and other titles. He is also the author of six books including "Bad Company", chosen by The Sunday Times as its Business Book of the Week.

9 Tips For Discovering A Great Idea For Your Next Info Product

So, you have run out of ideas for your next niche. You don't know what niche to pursue next or what you should do for your next product. Maybe you have found a good niche and need some ideas to generate a product for that niche. Below are 9 tips you can use to help.

1. Think about your work or career? Maybe you have particular knowledge about something that people would be willing to pay for to learn about? Think about your skills and accomplishments and do research to see if there is a market available for them.

2. Teaching how something is done. It is one of the best ways to really learn something. You can become an expert in anything once you understand it enough to really explain it to others. It can easily be done over the Internet via different formats, in easily digestable chunks.

3. As an alternative to teaching, take some courses yourself. Research courses within your niche or field of interest, and consider creating your own products as a result.

4. Your own experiences in life can be used to help you create products in your niche. Everyone goes through much the same experiences like parenthood, sports, hobbies, fitness etc. Are you a successful entrepreneur for instance? Did you have a successful training formula for muscle building or weight loss?
It is easy to create a product from your own individual experiences because you have actually done it and learned from it.

5. Did you come up with a particular way of doing something? If so, document exactly what you did so others can replicate it. In this way you can develop a blueprint that can be copied, and your initial mistakes avoided. Like a process for losing weight or gaining subscribers to a mailing list.

6. What about your hobbies? People have different hobbies but many will have similar hobbies to you. It does not matter what your hobby is, chances are others will share it also. Just come up with some way to help someone else learn from your knowledge and experience.

7. Discover what people want then help them. Do research, ask them outright or in polls. Alway remain alert. Visit forums or discussion boards and see what people are having problems with by the questions that continually get asked. Then produce a product that will help them get the answers.

8. Focus in on your niche if you already have one. Maybe the competition is too much. Are you able to narrow it down at all? Try to be unique and different to others. If your niche is cooking, make a product for the under 20's or over 60's for example. Doing so will appeal to an exact target market instead of a scatter-gun approach.

9. Finally always be alert and receptive to your surroundings wherever you are. Develop an inquisitive mindset and observe online and offline interactions with a view to learning more about subject matters or difficulties people may be having. Be vigilant always with a view to developing fresh ideas for common interactions and you will be amazed at the sheer variety of products you can come up with.