The most valuable of the various credits and deductions for higher ed is the American Opportunity credit.
Has the Hope Scholarship Credit or American opportunity credit been claimed for this student for any 4 prior tax years?
FORBES: Hundreds Of Thousands Of Taxpayers Thought To Be Impacted By Education Credit Snafu
Other examples of refundable credits include the additional child tax credit and, within limits, the American Opportunity Credit for students.
FORBES: A Beginner's Guide To Taxes: Do I Have To File A Tax Return?
The other is the clemency you get if claiming the American Opportunity credit causes some of your 529 withdrawal to become taxable.
FORBES: Paying for College: Federal Tax Credits and Deductions
Similarly, you can claim the American Opportunity Credit or the Lifetime Learning Credit in the same year as a distribution from the QTP.
Not having that reduction to his taxable income pushed his income up through the phase out limit on qualifying for the American Opportunity Credit (AOC).
The American Opportunity credit is the most valuable of these four.
FORBES: Paying for College: Federal Tax Credits and Deductions
One is that the financial aid rules, in determining discretionary income, count your income tax bill as it would have been before you claimed the American Opportunity credit.
FORBES: Paying for College: Federal Tax Credits and Deductions
But to prevent double-dipping the IRS requires that distributions from 529 plans be coordinated with other education-related tax incentives such as the lucrative American Opportunity Credit, tax exclusion on savings bonds, etc.
FORBES: Bad College Advice - Don't Save in Your Child's Name
Those include, for example, expansions of existing credits such as the child tax credit, the earned income tax credit (EITC) and the American Opportunity Credit (the souped up version of the Hope Credit).
You may not itemize deductions on a form 1040-A. You may claim some credits using the form 1040-A, including the child tax credit, education credits, earned income credit, credit for child and dependent care expenses, credit for the elderly or the disabled and the American Opportunity Credit.
FORBES: A Beginner's Guide To Taxes: Which Tax Form Should I File?
On Wednesday, March 24th, Secretary Duncan will meet with students and parents that stand to benefit from the American Opportunity Credit for college expenses at Northern Virginia Community College in Annandale, VA. Secretary Chu will visit Seaway Manufacturing Corporation, a manufacturer of energy efficient home improvement products that qualify for the Recovery Act tax credits, in Erie, PA on Friday, March 26th.
Several tax breaks for middle class and lower income Americans were extended for five years: the Earned Income Tax Credit, the Child Tax Credit and the American Opportunity Tax Credit.
FORBES: Fiscal Cliff: With Crisis Averted For Now, Investors Can Briefly Rejoice
The Child Tax Credit, Earned Income Tax Credit, and the new American Opportunity Tax Credit will stay in effect for at least the next five years.
WHITEHOUSE: Seven Things You Need to Know About the Tax Deal
The package moves to spur growth by also extending the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the American Opportunity Tax Credit.
Also extended for five years (not permanently) are number of individual tax credits including the child tax credit, the controversial earned income tax credit (EITC), and the American Opportunity Tax credit (the souped up version of the Hope Credit).
For example, consider a tax credit for higher education costs, such as the existing American Opportunity Tax Credit (AOTC).
FORBES: Asking the right tax questions - Guest Post by Professor Annette Nellen
That applies to those claiming the American Opportunity Tax Credit and the Lifetime Learning Credit.
FORBES: IRS Advises Further Delays For Taxpayers Claiming Education Breaks
In a previous post, I explained how to claim the American Opportunity Tax Credit in detail.
The American Opportunity Tax Credit and the Lifetime Learning Credit were affected by the recent tax deal.
FORBES: IRS Advises Further Delays For Taxpayers Claiming Education Breaks
You may only claim the American Opportunity Tax Credit (or the old Hope Credit) for four years of undergraduate education.
The bill would extend for five years the American Opportunity Tax Credit.
And the definition differs yet again for education benefits: the American Opportunity Tax Credit, Lifetime Learning Credits, and the tuition and fees deduction.
Currently, the federal government offers two types of credits to offset tuition: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit.
FORBES: It's Well Past Time To Slash Higher Education Subsidies
In December, the White House extended the American Opportunity Tax Credit, which is expected to provide tax breaks to the families of 9.4 million college students this year.
Like Mary Ellen, Joanne and Philip Maynard, are able to put their son, Gregory, and daughters, Katherine and Elizabeth, through UMass Amherst, in part because of this American Opportunity Tax Credit.
WHITEHOUSE: President Obama on the American Opportunity Tax Credit
Additionally, millions of folks continue to be able to take advantage of things like the American Opportunity Tax Credit, and the expansions to the Earned Income Tax Credit and the Child Tax Credit.
The AOTC may be claimed in the same year that a tax-free distribution is made as long as the same expenses are not used to calculate the tax-free distribution AND the American Opportunity Tax Credit.
FORBES: College Tax Credit: The $2,500 American Opportunity Tax Credit
In fact, it left out the extension of the American Opportunity Tax Credit and other tax provisions that would have resulted, if that were passed, in a tax hike for 18 or 25 million American families.
You use IRS form 8863 (get the form and instructions here) to claim the American Opportunity Tax Credit, which is based on qualified college expenses that you pay for yourself, your spouse or a dependent for whom you claim an exemption on your tax return.
应用推荐