Educational Credits/Deduction Eligibility?

[zeros]

Somebody contacted me regarding this subject. Person graduated from high school, married, had children and then decided to go back to school. Chose the medical field. Preparer said, "as long as this is a new profession that you have never worked in, the educational benefits are not deductible." Is this an old rule before the Hope/Lifetime/Tuition &fees laws came into effect? Any reason why she would be ineligible for these benefits?

[Jesse]

"as long as this is a new profession that you have never worked in, the educational benefits are not deductible."

Maybe preparer meant not deductible on schedule A?

[zeros]

Hope Credit

Seeing that she has been out of high school for a number of years would she be eligible for the Hope Credit if she hasn't used it before?

[dtlee]

Seeing that she has been out of high school for a number of years would she be eligible for the Hope Credit if she hasn't used it before?

Only thing that matters is the college year that she is in and whether or not it has already been taken twice. She could be 100 years old and in her freshman year.

Also must be enrolled at least half time and be in a degree program (at least for one term) and not be convicted of a felony drug possession charge for the Hope Credit.

[taxmom34]

my understanding

of the hope credit is that it is only available for the 1st and second year of college after high school. i think this person would be eligible for the lifetime credit not the hope credit

[Jesse]

It is available for the first two years of post secondary education, but it does not have to be right out of highschool. See TTB-pg 12-3 or search IRS site for requirements.

[BHoffman]

Sec. 25A

Here's a link to the cite:

http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._25A._Hope_and_Lifetime_Learning_credits

[OtisMozzetti]

Hope credit requirements

of the hope credit is that it is only available for the 1st and second year of college after high school. i think this person would be eligible for the lifetime credit not the hope credit

As of beginning (Jan. 1) of the tax year, the student must not have already completed two years of after-high-school education. Thus, if a student starts college in September and spends until May as a "freshman" year, and comes back the following September though May as a "sophomore" year; there are three successive calendar years which might be used for the Hope credit. However, the Hope credit cannot be claimed if it has already been claimed for two previous tax years. It is possible, though, to amend previous years of returns in order to remove that impediment.