The Federal Tax Credits Blog

Posts Tagged ‘education tax credit’

Republicans Busted On Stimulus Hypocrisy By Rachel Maddow

Question: Education credits for 2009 for a student who graduated their fifth year?

I graduated from High School in 2004 but just graduated from college this year. Are there any credits I can file on my taxes? I got the education credit last year and the year before but from what I’ve read it’s only for the first four years of post-secondary education. Any help?

Answer: The American Opportunity Credit is an extension of the Hope Credit. The AOC can be taken four times, whereas the Hope Credit could only be taken two times.

If on 1/1/2009 you were classified as an undergraduate, and you had not completed four years of full-time undergraduate credits as defined by your institution, then you may qualify for the AOC. You also have to be attending at least half-time and not have a felony drug conviction.

The AOC is probably going to be more valuable to you than the Lifetime Learning Credit. If you do not qualify for the AOC because you were a less than half-time, you can still get the LLC.

Pappas Details Impact of Local Government Debt on Cook County Taxpayers

Cook County taxpayers are on the hook for a staggering amount of local debt, according to figures presented by Cook County Treasurer Maria Pappas today. Cook County’s numerous local governments face mounting debts totaling more than $108 billion.

American Recovery & Reinvestment Act Survey | ARRA Survey | Liberty Tax Service

Question: Help with Ontario tax credits?

I just got a notice of assessment from CRA – it says I have $6,563 of unused Ontario tuition and education amounts available to carry forward, and $6,479 of unused tuition education and textbook amounts to carry forward. My total income for the year was $21,000 , and my refund was $478.

What does all this mean? Is it too late to redo my taxes for this year and get more $ back?

Answer: This means you have unused tuition credits that you could have used to lower your taxes that you paid. No it is not to late to ask for an adjustment on your tax return. If you are not able to do it yourself take your copy of tax return and notice of assessment to a tax preparer and have them do it.

Constellation Software Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2010 and Declares …

TORONTO, ONTARIO–(Marketwire – 03/02/11) – Constellation Software Inc. (TSX: CSU – News ) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2010, and declared a $2.00 per share dividend payable on March 31, 2011 to all common shareholders and class A non-voting shareholders of record at close of business on March …

Dual Credit Courses at Georgian College

Question: What amount from the 1098-T is used for a tax credit? American opportunity?

I’m filling out my parents federals and I’m stumped on the education credits section.

Before getting into detail, this mess is about wether I can use tuition payed with loans to enter it as qualified expenses on a education credits (Form 8863) for the American opportunity credit

My brother and I both go to college and we both take out loans to cover tuition, both our box 1(payments received) are empty, his box 2 (amounts billed) says $4,052 and mines says $14,891. After it’s filled out on the return it says our Tentative American opportunity credit is $5,000 ($2,500 each). Is this right??? We also have amounts we paid by cash that loans did not cover, like $1,000 combined.
My brother had grants and scholarships of $4,052
and I of $5,457.
So am I supposed to take for example mine:
$14,891-$5,457= $9,434 and this is what I should enter for qualified expenses which will then limit it to $4,000 ????

Answer: Qualified expenses are not always the same as payments received or Tuition billed. Qualified expenses are: Tuition and Other fees paid to a qualifying educational institution. Related expenses are: Student-activity fees only if the fees must be paid to the institution as a condition of enrollment or attendance.

Go here http://www.irs.ustreas.gov/pub/irs-pdf/p970.pdf start with page 9 for the American Opportunity Credit. This is pub970. It is very important not to double dip. And by double dipping I mean, you are not allowed to use the same expense for the same student for more than one educational credit.

I did have a much longer answer, that I wrote, before I read the additional details section and saw the actual question. And to answer the question in your details, the answer is yes, you do use the $4,000.

But also go to the link I gave you above as well. Pub970 does have some very good flow charts to help you figure out what credits you can take and cannot take.

Press Conference by President Obama

THE PRESIDENT: Have a seat, everybody. Good morning. Before I take your questions, I just want to talk a little bit about our continuing efforts to dig ourselves out of this recession and to grow our economy.

President Obama Discusses Rep. Doggett’s More Education Tax Credit

Question: Hope credit or Education credit…..?

I graduated in 2008 with my masters degree and have a ton of student loans that I just started paying back in 2009. I make less than 80k per year and have never taken any educational credit on my taxes. Does anyone know if I am eligible to claim a tax credit ?

Answer: If you graduated in 2008 and haven’t been in school since, there are no education credits you can take on your 2009 tax return. You may, however, claim up to $2,500 in student loan interest as an adjustment to income.

Although there are no tax credits for you to take on your 2009 return, if you were a student, filed tax returns, and had some tax liability for 2006-2008, it is possible you would qualify for the lifetime learning credit for those years. The lifetime learning credit is a credit of up to $2,000 to reduce your tax liability. If you are eligible for this credit for past years, you may file Form 1040X to amend your original returns and claim the credit.

Please note that in order to receive a refund (or additional refund) you must file your amended return within three years of the original due date of the return. This means if you qualified for the lifetime learning credit for the 2006 tax year, you have until April 15 of this year to amend your return and claim the credit. After April 15, any additional refund will be forfeited.

Bold blows vs corruption, cautious steps vs poverty

BENIGNO Simeon ‘Noynoy’ C. Aquino III became the Philippines’ 15th president on June 30, 2010 or exactly 70 days ago, triggering a contagion of hopefulness among Filipinos. He wooed and won votes with a slogan that was simple, yet catchy: “Kung walang corrupt, walang mahirap.”

The American Opportunity Tax Credit