The Federal Tax Credits Blog

Archive for the ‘Education Tax Credits’ Category

Question: I have just started online classes with harrison college, will I get a tax credit next year?

Answer: Check irs publication 970.

To qualify, Harrison college must participate in the Department of Education student aid program. If they don’t, no credit.

Some reasons to pass up $6,500 home-buying credit

Have you thought of trading up to a bigger home, especially in light of the new $6,500 homebuyer tax credit?

A Better College Credit

Question: At college full time having a baby, can i claim for childcare ect?

I’m 18 and at college full time which is anything from 22 hours to 30+! The course i’m on doesn’t finish untill June 2009 and my babies due 10th December and i’m wanting to stay in college unitll Dcemeber and return in January! I’ve already begun to look for a child minder for while im at college as my boyfriends in the army and can’t look after the baby. As i’m at college full time i don’t have a job and wondered if i’d still be able to laim childcare tax credits as i’m at college 22+hours a week! Also if me or my boyfriend i would be entitled to child tax credita and taxcredits? Thanks

Answer: If you were living together as a couple you would be entitled to child tax credits and childcare fees of upto 70%ish. Your college may have some grant scheme to help with fees if you speak to students services they may know of some award scheme specific to yoour college to which you could apply.
If you live at home speak to student services anyway.

Deadline Nears for Tax Credit on College Savings

Thursday is a deadline for parents to claim a 2009 tax credit for contributions to a college savings account.

Recovery: Education Credits – Students – September 2009

Question: Claiming Education Credits for 2008 Taxes?

I am preparing all of my documents and statements to do my taxes and I just ran into an issue regarding education credits. I took out $3500 loans in 2008 to pay for a school tuition debt that carried over from 2007. Since I did not take out the loan until 2008 can I claim the credit for 2008 tax purposes?

Thank you!

Answer: No.

The tution was in 2007. That’s the year you claim it.

PM urges whole nation to strive for higher achievements * Key targets achieved in 2009 compared with 2008’s figures

The year of 2009 is over. It witnessed many complicated issues in the world and domestic economies, causing huge difficulties for business and production and people’s lives.

Rep. Ryan on Higher Education Tax Credits

If you are interested in going to college, going then online to do a college scholarship search. This is a fast and easy way to find college search websites. Sites such as FastWeb, CollegeScholoarships.com and others are waiting to help you find the scholarship for you to attend the college of your choice. Paying for college can be tough, and these sites will help you to find many different scholarships that will help you to pay for college. There are many different scholarships that can help you to attend college and the categories are endless.

A college scholarship search can help you to get the funding that you need for college courses. Many of these college search websites will allow you to apply for a scholarship from their databases. You can find many different types of scholarships on these sites. They will also give you directions on how to apply for these scholarships and the qualifications for each of the thousands of scholarships that are available to you. There are scholarships based on jobs, religion, nationality and race. They also offer scholarships to various colleges, alumni and other qualifications as stated on their site.

So there are many different scholarships that can be found on college search websites. No matter how many college scholarship search engines that you use, you can find a scholarship that will help you to pay for college. No matter what you want to do, you can find a scholarship that pertains to you and will help you to pay for college. College can be very expensive to pay for and these scholarships will ease the financial burden on either you or your parents. So with that being said, how do you search for these types of scholarships?

One thing you will need to do when doing a college scholarship search is to register with as many different colleges search websites as possible. You will then search the database using different parameters in order to find what you are looking for. Once you find a scholarship that you are interested in, then you will need to fill out the application and return it. Once that is done, then you will need to wait until you hear from them. There are certain qualifications that are required in order to qualify for any of these scholarships and you must be able to meet those qualifications before applying.

There is no limit to how many scholarships that you can apply for and each site will have a different listing for all the scholarships on their site. By applying for these scholarships before the cutoff date, you stand a much better chance of getting your college education funded completely. Scholarships and financial aid go a long way towards funding your college education and you can use scholarships to completely fund your college education without paying a penny out of pocket. Some scholarships will also pay for books as well as tuition. So, if you want to get a college education, check out many different scholarship sites on the internet.

A no-fuss New Year’s Eve party

Forgot to make New Year’s plans? Or worse, did you invite people over but put off planning? Have no fear. A great and simple New Year’s Eve party can be whipped up in a snap.

President Obama Nominates Dr. Benjamin for Surgeon General

Question: How does the $2500 Education Tax Credit work and what are the requirements?

Online I read: Individuals making less than $80,000 or families making less than $160,000 can get up to $2,500 in tax credits for college tuition. 40 percent ($1,000) of the credit is refundable.

I’ve been going to school for 4 years but do not have my degree yet, do I still apply? If so…

If only 40% is refundable, I’m assuming the only way you can use the other $1500 is if you owe the government money when you file taxes?

I normally file W-2’s and get money back at the end of the year so would that extra $1500 disappear?

I also might change jobs and be filing a 1099…where I would owe the government at the end of the year. If that’s the case, does the tax credit help pay off what I would owe the government?

Sorry, many questions in 1 but thanks for the help.

Answer: We will need some Additional info. Are you attending a Midwestern disaster educational institution? If not, below is the way the credit works.

First you are going to use the lifetime credit (max $2,000). Of course, the calculation is based on your expenses for school. For example to get the full credit you need expenses in the 10,000 range each year.

Now once you determine if you have those expenses, we would need to see if you owe any taxes. If you do they will offset those taxes until the credit is used in full or your tax liability is zero. This credit is not a refundable credit meaning, each year is a use it or lose it credit. Sometimes it may benefit you and other times it won’t.

If you change to a 1099 if you don’t have positive income you won’t get much of any benefit out of the credit. If you do have taxable income then it goes back to the use it or lose it concept.

By the way, those income limits mean you can’t get the credits. You lose them in that year. This credit is based on a yearly review of your tax position, and you can qualify throughout your lifetime.

Now if you are attending an institution that qualifies then your credit is increased to $4,000 that is the only difference. The monies do not qualify for any reimbursement once your liability for taxes hit zero. in other words you get the doubling benefit only if you have taxable income, otherwise no benefit.

Home calendar

Home Buyer Round Table: Kathy Toth and team will host a discussion about the current housing trends. 5:30 p.m. Wed. at United Bank and Trust, 355 S. Zeeb, Ann Arbor. 734-669-0337

AeA Testimonial by Anne Mulcahy, Chairperson & CEO, Xerox