The Federal Tax Credits Blog

Posts Tagged ‘reference’

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: if i by a energy star washer and a dryer will i be able to get a tax credit on my 2009 tax’s?

Answer: No, washers and dryers aren’t eligible for a tax credit. But you’ll save on your utility bills.

More Green for the Buck: When Banks Say No, It’s Micro-Lenders to the Rescue

SAN JOSE, Calif.—At Dizo Cleaners, a family-owned drycleaner in San Jose, neatly pressed shirts and dresses hang on rods from the roof, waiting for their owners to pick them up. Like most such establishments, the place smells of petroleum-based solvents—chemicals…

Rent condo 14221 E 1st $104

Question: If passed, how is the credit for home heating bills going to work that Obama is wanting to pass.?

I heard that Obama is wanting to get a $1000 credit passed yearly for people to use for high heating costs. How will this come? In the form of a rebate check or just a credit on our income taxes?

Answer: Without a doubt it will have to be a credit on your taxes… not a free check…

It has to pass Congress too…

Reportlinker Adds Europe Renewable Energy Policy Handbook 2010

NEW YORK , Aug. 10 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue: Europe Renewable Energy Policy Handbook 2010 http://www.reportlinker.com/p0254459/Europe-Renewable-Energy-Policy-Handbook-2010.html Europe Renewable Energy Policy Handbook 2010 Summary GlobalData’s energy report “Europe Renewable Energy Policy …

IRS TAX TIPS: Recovery Rebate Credit (ASL, CAPTIONS, & AUDIO)

Question: Do I qualify for the 1st time home buyer tax credit?

While going through a divorce I moved from my home 8/1/06 (I have a signed lease for my new residence) and it sold 03/31/07. Since this was not my primary residence after 8/1/06, it appears I would qualify for the $8k tax credit if I purchase a new home after 08/01/09 this year? In reading the definition of 1st time homebuyer in the stimulus bill, it states “The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.”

Answer: It sounds like your primary residence became a secondary residence after 8/1/06 therefore you did not own a primary residence after that point. After 8/1/09 you may qualify for the tax credit if you buy a primary residence after 8/1/09 and before 12/1/09. Here are some FAQ about the credit for more information:

http://www.federalhousingtaxcredit.com/2009/faq.php#2

Ohio Executes Man Who Killed Two at Warehouse

Prison officials say 38-year-old Roderick Davie died by lethal injection at 10:31 a.m. Tuesday.

New Markets Tax Credit (NMTC) Basic Overview

Question: Im wondering if anyone knows if the First Time Homebuyers Tax Credit will get extended this year.?

Im in the process of buying my first home and im wanting to know if i should keep my hopes up for getting the first time Buyers Tax Credit. Its quite possible ill close escrow or be in escrow before this years deadline , but thats a 50/50 shot. So if anyone has any insight it would be amazing news. Thank you

Answer: my realtor friend doesnt seem to think it’ll be extended but you never know

Double tax called a disincentive to investing

You may want to think twice before buying a cottage this summer.

New Tax Credit to Buy a Home – Prudential Homesale