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Old 01-29-2012, 12:08 PM
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College Credit/Deductions

My child is going to college. Her mother took her as a deduction for tax year 2011. I would like to take her for tax year 2012. What qualifies me to take this and what is included?

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Old 01-29-2012, 12:59 PM
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“I would like to take her for tax year 2012. What qualifies me to take this and what is included?”---->As long as you are claiming her as a dependent on your return for either the Hope or lifetime learning credit you can claim the credit for the expenses on your return. If you claim the Tuition and Fees deduction (adjustment to income) on your return and claim your daughter as your dependent you must pay the educational expenses in order to deduct them. What you have set-up is that your daughter is paying the tuition out of her checking account; regardless of what the source was and paying them directly herself. In that case no one can claim the deduction. If you choose the tuition and fees adjustment to income you should make the payments directly to the institution. The deduction for AOC has been increased to $2,500 for those eligible for the credit. The maximum comes from a dollar for dollar tax deduction for the first $2,000 paid in tuition and fees followed by 25% of the next $2,000 spent; for single filers the income restriction has been raised to $80,000 (partial credit for those between $80,000 and $90,000) and for joint filers to $160,000 (partial credit for those between $160,000 and $180,000);the credit may now be taken for the first four years a student is in college. The Lifetime Learning Credit, is available to taxpayers who have incurred education expenses. For this credit to be claimed by a taxpayer, the student must attend school on at least a part-time basis. The credit can be claimed for education expenses incurred by you, your spouse, or your dependent, your daughter in this case.This credit allows for a 20% tax credit for first $10,000 of qualified tuition and expenses to be fully creditable against your total tax liability. The maximum amount of the credit is $2000 per eligible student. The credit is available for net tuition and fees (less grant aid) paid for post-secondary enrollment.You CAN’T claim both of the credits at he same time on your daughter.



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