The Federal Tax Credits Blog

Archive for the ‘Education Tax Credits’ Category

If the students are looking for the loan to pay for their college fees, and they do not have the good credit records then bad credit student loans are the perfect loans for those students. This loan is also called the Federal loan for students. Sometimes it becomes hard to meet the financial expenses due to the lack of funds. These loans do not require credit check but also offer the lowest rate of interest. These loans provide borrowers the better interest rate even if they have poor credit ratings. Poor credit score affects the ability to avail any loan but with the bad credit loans the issue of the credit become of no use.

As the name suggest, this loan is especially made for the solution of the students. These loans are provided to give them smooth and tension free financial life. These loans finance all the expenses of the students such as their admission fees, accommodation fees, buying computer, books, and other utility bills.

The process of approval and repayment are also simple for these loans. There is the option for the applicants that they can pay back the loan amount after six months of the approval of the course. The bad credit loans are designed to aid the students and decrease the credit burden.

Students can apply online for these loans as it saves their time and money both. They can easily fill the loan application form and borrow the loan. Bad credit loans are very helpful for the students at the time of crises. These loans are available almost for every student. Bad credit loans are emerging as the good solutions for the problems of the students with bad credit. But, there is one hurdle while availing the loan amount that the student has to get the co-signer. Co-signer can be any member of the family, or it can be friend or any relative. He/she can help the borrower to get the loan amount.

Take steps to stave off a financial hangover

Christmas and New Year may have passed but their cost is probably about to arrive. Before the bills descend, take action now to spread the expense. (01/01/2010 18:41:16)

Student Loan Basics

Question: 2009 $2500 Tax Credit for college students, can someone explain please?

I am graduating in May 2009 (this year) and I heard about the $2500 tax credit. How does this affect me and will I get any $$ out of this? I am really confused, i keep hearing different explanations! I have taken out private and student loans, work in a work study program, and am a dependent of my parents ( though i’ve paid for college myself). thanks!

Answer: If you aren’t claimed on your parent’s taxes and file your own taxes, you will be able to take the tax credit for 2009. Tax credits are subtracted directly from the tax a family or student owes. You had to have made enough to be taxed $2500 in order to benefit from this credit.

Hope this helps!

There are still some opportunities to save on taxes in 2009

Although the year is about to end, there’s still time to make some last-minute adjustments if you want to reduce your federal tax liability for 2009.

Mr. Williams Goes to Washington

Question: How do I get this student loan off my credit?

I had a student loan that apparently defaulted when I took a year off from college. When I graduated, I couldn’t pay them, so I did deferrments for a couple of years. Things got even worse and I was unable to pay for 2 more years. In the meantime, my loan transferred to a different agency. In 2005, I negotiated a $100 monthly payment so I was at least paying on it. Last year, I consolidated because they said I had to pay $400/month or they were gonna garnish my wages and taxes. However, my original loan holder as well as the company it was transferred to are all still on my credit report. I graduated in 2001, so when does he 7 years start? Is it from my first delinquent payment (while not in forebearance or deferral)? If that has been more than 7 years, how do I get this account of my credit?

Answer: The last time you’ve made a payment is when your 7 years start. So, every time you make a payment, your 7 years start over. Another thing, student loans are a little more complicated depending on who financially assisted you through school…lots of time, it’s gov’t loans and I’m not sure if the 7 year credit thing applies to that. If I were you, I would make minimum payments and try to teach or something to get student loan debt forgiveness. They forgive your debt if you obtain certain jobs such as teaching in a low income area.

Top 10 stories of the decade

The aughties started with all the promise of the a millennium. We had survived the Y2K scare, the economy was rolling right along and everyone thought things could only get better.We were wrong.This decade in Lancaster County has been marked by perhaps the worst tragedy in its history — the sl…

Student Documentary

Question: Does filing for the education credit affect your tax refund process?

I am a North Carolina resident. My tax return was accepted on January 17, 2009. And the program taxslayer said my refund should have direct deposited on January 30, 2009. I didn’t receive it so I checked irs.gov and it said February 3, 2009. Then February 3rd there was nothing and I checked it again and it then said Februay 10th. Does anyone know why the dates are changing so much and why I haven’t received it by now. I filed for the Lifetime Learning credit and was wondering if anyone thought that could be the delay or may have had the same problem? Thx:)

Answer: Plenty of returns have been delayed for 1 to 3 weeks this year. The IRS is not saying why on any specific return though the most likely culprit appears to be incorrect claims under the Recovery Rebate Credit. Many folks either failed to enter the correct amount of last year’s stimulus rebate in the tax software or deliberately omitted it when they saw that it reduced their apparent refund. If the numbers don’t match the IRS records, processing is delayed while the IRS manually reviews the numbers. It’s not likely that the Lifetime Learning Credit is the culprit.

The AMT issue mentioned by another poster was LAST year. The article is dated January 14, 2008.

Oklahoma to receive $2.6 billion in stimulus funds

OKLAHOMA CITY (AP) — Oklahoma is expected to receive more than $2.6 billion from the American Recovery and Reinvestment Act of 2009, along with additional grant funds in areas like education, techn…

Platypi Vlog: Cooperative Education Tax Credit

Question: question about lifetime tax credit for qualified students…?

I went online to H&R Block to use their calculator to see if i was eligible for the lifetime tax credit. i am a senior at a university that qualifies for the credits. i know i am not eligible for the hope one because i am a senior. however, when i put my information into the calculator it says “You’re not able to benefit from the tuition deduction or education credits because your taxable income is $0.” i made $7,000 last year. my qualified expenses are $9,163.

i guess i dont really understand what this means, because when i look up on the IRS website at the requirements i do qualify. i am not being claimed by anyone else.

any suggestions?

Answer: If you are filing as single you will have no tax liability. You reduce your income by $5450 standard deduction for filing single, then you reduce by your personal exemption of $3500. Therefore you have no taxable income. If you have no taxable income you have no tax.

Education credits are non-refundable credits so this means they cannot be taken if you have no tax liability. You have no tax to take the credit against. Most credits are not able to be carried over to the next year, including the education credits.

Bottom line you have to have a higher income to be able to benefit from claiming any education credits on your income tax return.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

To-do list for managing finances in 2010

WASHINGTON, US: It seems like 2009 was the year we all resolved to cut back on debt and consumption, and live a leaner lifestyle. Indeed, most people have made a good start — savings rates are up and consumer debt is declining. But that doesn’t mean we’ve fixed all of our financial problems.