What is the limit I can put on education expenses for this year? Is it $4000?
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Education expenses
You need to be more specific. If you are talking about the Tuition and Fees Deduction, then $4,000 is the maximum amount for certain taxpayers. If you are asking about the Hope or Lifetime Learning Credit, the maximum amounts are different. -
$4000
As long as you paid at least $4000.I would put a favorite quote in here, but it would get me banned from the board.Comment
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The Hope Credit is what I am talking about? Is there a limited on that?Originally posted by KBTSComment
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The Hope credit is calculated using a maximum of $2,000 of qualified expenses, unless student was attending a school in the Gulf Opportunity Zone. In that case, the maximum amount of qualified expenses increases to $4,000. See instructions to Form 8863 for details on the GOZ.Comment
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I'm confused....
... are we talking about doing a tax return manually or are we talking about pluging in numbers without real figures, only to get the maximum refund?
Or is this a non pro doing his own return???This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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No the client spend over $4000 on his college. He got a slip from the college that is what he spent that year. So I didn't know where it went and how much the limit was since it was $4782.Originally posted by BOB WComment
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This is the correct answerOriginally posted by KBTSEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Are you doing ......
... the return without a computer? Most program have an input screen and the computer defaults to the proper deduction.
What program are you using?Last edited by BOB W; 02-28-2006, 11:19 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Education Credits
Remember there are refundable and nonrefundable education credits. The amount of the credit does not matter as much as which is most beneficial for your client. When using the tuition credit, check and be sure the Hope or other credits dont benefit your client more.Comment
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Which refundable tuition credits are you referring to?Comment
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This is my first year with Drake.Originally posted by BOB WComment
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The Hope or the Lifetime. I didn't know where to put it nor the limitation on it.Originally posted by BP.Comment
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Sorry, Guest, I was actually asking Chief the question, because I don't know about the REFUNDABLE tuition credits he referred to. But to respond to your question, sounds like you need to complete Form 8863, which carries to 1040 line 50. Check the instructions for that form, see which one of the two credits your client qualifies for.Comment
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Education Credits
The tuition credit is taken again the income of the client. The other education credits are taken again the tax paid by the client.Comment
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