01-31-2010, 01:58 PM
(This post was last modified: 01-31-2010, 02:12 PM by CouchPotato.)
Howdy,
Sharing some information for tax season so everyone can get some muney back from Uncle Sammy. Unless someone with more tax edju-mi-cation disuputes this...
This is a tax credit so you can get dollar-for-dollar (up to $2,000) back and an additional .25-for-dollar (up to another $2,000). So a maximum of Up to $2,500 credit per eligible student. This credit includes enrollment fees, test fees, proctor fees, BOOKS, or other equipment/supplies you used for any CLEP/DSST/ECE etc. type exams as long as you meet the qualifications below.
You DO NOT have to itemize to get the credit, so you do not submit any receipts when you file your return. Just keep receipts (from ebay, amazon, used book store...) for your own records in case you are unlucky enough to get audited.
Caution. If you have more than one student eligible for the American opportunity credit or the Hope credit, you must claim the same credit for all eligible students. You cannot claim both the American opportunity credit and the Hope credit on the same tax return. However, you can claim both the American opportunity credit and the lifetime learning credit, or the Hope credit and the lifetime learning credit on the same return—but not for the same student.
For 2009 the American opportunity credit is available. The Hope and the American Opportunity credits are mutually exclusive. One or the other can be in a return, but not both. The following requirements apply to the American opportunity credit.
Briefly, the qualifications for the American opportunity credit are as follows:
1. As of the beginning of 2009, the student had not completed the first four years of postsecondary education as determined by the eligible educational institution. For this purpose, do not include academic credit awarded solely because of performance on proficiency examinations.
2. The student was enrolled in 2009 in a program that leads to a degree, certificate, or other recognized educational credential.
3. The student was taking at least one-half the normal full-time workload for his or her course of study for at least one academic period beginning in 2009.
4. The student has not been convicted of a felony for possessing or distributing a controlled substance.
5. You cannot be claimed as a dependent on someone's 2009 tax return, such as your parent. However, if you can be claimed as a dependent, but are not claimed, you may claim the American opportunity credit.
American opportunity credit. This new education tax credit (a modification of the Hope credit) is available for 2009 and 2010. The maximum credit per student is $2,500 (100% of the first $2,000 and 25% of the next $2,000 of qualified education expenses). The credit is available for the first 4 years of postsecondary education and 40% of the credit (up to $1,000) is refundable for many taxpayers. The amount of your credit for 2009 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cannot claim this credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return). Taxpayers with at least one student attending an eligible educational institution in a Midwestern disaster area may elect to continue to claim the Hope credit for all students based on the previous Hope credit rules.
Instructions for Form 8863 (2009)
Qualified Education Expenses
Generally, qualified education expenses are amounts paid in 2009 for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. It does not matter whether the expenses were paid in cash, by check, by credit card, or with borrowed funds.
American opportunity credit: Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.
Qualified education expenses do not include amounts paid for:
Room and board, insurance, medical expenses (including student health fees), transportation, or other similar personal, living, or family expenses.
Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student's degree program or (for the lifetime learning credit only) helps the student acquire or improve job skills.
Nonacademic fees, such as student activity fees, athletic fees, insurance expenses, or other expenses unrelated to the academic course of instruction.
I am NOT a tax accountant so do your own research!
Enjoy!
eeya:
Sharing some information for tax season so everyone can get some muney back from Uncle Sammy. Unless someone with more tax edju-mi-cation disuputes this...
This is a tax credit so you can get dollar-for-dollar (up to $2,000) back and an additional .25-for-dollar (up to another $2,000). So a maximum of Up to $2,500 credit per eligible student. This credit includes enrollment fees, test fees, proctor fees, BOOKS, or other equipment/supplies you used for any CLEP/DSST/ECE etc. type exams as long as you meet the qualifications below.
You DO NOT have to itemize to get the credit, so you do not submit any receipts when you file your return. Just keep receipts (from ebay, amazon, used book store...) for your own records in case you are unlucky enough to get audited.
Caution. If you have more than one student eligible for the American opportunity credit or the Hope credit, you must claim the same credit for all eligible students. You cannot claim both the American opportunity credit and the Hope credit on the same tax return. However, you can claim both the American opportunity credit and the lifetime learning credit, or the Hope credit and the lifetime learning credit on the same return—but not for the same student.
For 2009 the American opportunity credit is available. The Hope and the American Opportunity credits are mutually exclusive. One or the other can be in a return, but not both. The following requirements apply to the American opportunity credit.
Briefly, the qualifications for the American opportunity credit are as follows:
1. As of the beginning of 2009, the student had not completed the first four years of postsecondary education as determined by the eligible educational institution. For this purpose, do not include academic credit awarded solely because of performance on proficiency examinations.
2. The student was enrolled in 2009 in a program that leads to a degree, certificate, or other recognized educational credential.
3. The student was taking at least one-half the normal full-time workload for his or her course of study for at least one academic period beginning in 2009.
4. The student has not been convicted of a felony for possessing or distributing a controlled substance.
5. You cannot be claimed as a dependent on someone's 2009 tax return, such as your parent. However, if you can be claimed as a dependent, but are not claimed, you may claim the American opportunity credit.
American opportunity credit. This new education tax credit (a modification of the Hope credit) is available for 2009 and 2010. The maximum credit per student is $2,500 (100% of the first $2,000 and 25% of the next $2,000 of qualified education expenses). The credit is available for the first 4 years of postsecondary education and 40% of the credit (up to $1,000) is refundable for many taxpayers. The amount of your credit for 2009 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cannot claim this credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return). Taxpayers with at least one student attending an eligible educational institution in a Midwestern disaster area may elect to continue to claim the Hope credit for all students based on the previous Hope credit rules.
Instructions for Form 8863 (2009)
Qualified Education Expenses
Generally, qualified education expenses are amounts paid in 2009 for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. It does not matter whether the expenses were paid in cash, by check, by credit card, or with borrowed funds.
American opportunity credit: Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.
Qualified education expenses do not include amounts paid for:
Room and board, insurance, medical expenses (including student health fees), transportation, or other similar personal, living, or family expenses.
Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student's degree program or (for the lifetime learning credit only) helps the student acquire or improve job skills.
Nonacademic fees, such as student activity fees, athletic fees, insurance expenses, or other expenses unrelated to the academic course of instruction.
I am NOT a tax accountant so do your own research!
Enjoy!
eeya:
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