Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-12-2009, 12:01 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What are the Tax Credits and deductions related to Higher Education?

The IRS Tax Code provides a few generous "tax incentives for families who are saving for, or already paying, higher education costs or are repaying student loans."

Taxpayers may be able to claim either a Hope or a Lifetime Learning Credit for the qualified tuition and related expenses of the students in taxpayers family, that may include the taxpayer, his spouse or an eligible dependent) who are enrolled in eligible educational institutions.

If a taxpayer claims the Hope Scholarship Credit for a particular student, then none of that student's expenses for that year may be applied toward the Lifetime Learning Credit.

Alternatively, taxpayers may be able to claim a tuition deduction of up to $4,000 of qualified education expenses paid during the year for the taxpayer, his spouse, or a qualified dependent.

The IRS does not allow the taxpayers to claim for this deduction if the taxpayers filing status is married filing separately or if another person can claim an exemption for the taxpayer as a dependent on his or her tax return. The qualified expenses must be for higher education.

Additionally, the taxpayer may be able to deduct interest paid on a qualified student loan. The deduction is claimed as an adjustment to income so the taxpayer would not need to itemize your deductions on Schedule A Form 1040.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Five Important Tax Credits Samatg Tax Credit 6 11-21-2017 12:27 PM
Section 529 Qualified Higher Educational Expenses Dadianio Education Planning 2 04-30-2009 04:11 PM
Education Costs Tax Credits Samatg General 0 02-13-2009 09:39 PM
How long to wait to avoid higher capital gains tax? debby Capital Gains 1 09-28-2007 08:55 AM
Sales Tax, Higher Education, Educator Expense Deductions Samatg General 0 01-23-2007 07:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.