SummaryCongress has liberalized education tax benefits for 2009, especially with the American Opportunity Credit. Taxpayers who may not have qualified in the past may now be eligible for some of these benefits. High-income taxpayers may find they can shift benefits to dependent students with taxable...
Typically this is used for college students who are dependents on their parents return, or adults over age 24. Students may claim this credit if you are over age 24 as long as you meet the other requirements, e.g. are not claimed as a dependent on someone else return, are attending ...
For dependent students filing taxes for the first time, it’s easy to overlook checking the “dependent” box — and if they don’t, they can’t be claimed on their parents’ tax forms without the long and arduous task of amending the return merely for failure to check a box. “Colleg...
More than 314,000 taxpayers made inaccurate claims for a popular tax credit that helps pay college expenses, getting $532 million they weren't entitled to receive, a government report said Thursday. The Hope Credit provides up to $1,650 a year to help pay expenses for the first two years...
credit. For the student to claim the credit, he or she cannot be claimed as a dependent on the parents' tax return. That can be worthwhile if, as in Fleming's clients' case, the parents make so much that they would lose tax breaks for their kids anyway under alternative minimum tax ...
The Lifetime Learning Credit is a good place to begin because it allows students (and/or parents) to claim as much as $2,000 in expenses related to education (on the stipulation that eligible students earn less than $60,000 annually for singles or less than $120,000 for married couples...
Watch this video to learn about the top college tax deductions and credits for students and parents. These are six of the most common deductions and credits that eligible students and their parents can use to increase tax savings at the end of the year.
How should students pay for monthly expenses? Start by writing down all the sources of after-tax money you get each month, Waters says. That includes money from a part-time job, financial aid, stipends, grants, loans, or a monthly allowance from your parents. ...
Your parents may be claiming you as a dependent this year if you are still in college, still live with them or they offer you substantial financial support. In doing so, your parents will receive certain tax benefits. Before filing your tax return, make sure to ask your parents if they ...
What’s the Lifetime Learning Tax Credit and how does it work? The Lifetime Learning Tax Credit can help offset the costs of college and can be used by independent students, parents of dependent students, and others. Learn more. Continue, What’s the Lifetime Learning Tax Credit and how ...