I have a client who is potentially eligible for both of these.
Since books and supplies are eligible for the AOC but not the Interest Exclusion, I would want to use those for the AOC first and then use Tuition & Fees up to the maximum $4000 that produces any benefit there and then carry any remaining Tuition & Fees over to the 8815.
Perhaps an example helps
Tuition & Fees: $4,600
Scholarships: (1,000)
Net Tuition & Fees: 3,600
Books & Supplies: $1,200
Is there any reason why I can't take the Books & Supplies and $2,800 of the Net Tuition & Fees for the AOC and then carry the remaining $800 to the 8815 for the Savings Bond calculation? I have not found anything that addresses this, so it appears to be okay, but I am wondering if I am overlooking something/
Since books and supplies are eligible for the AOC but not the Interest Exclusion, I would want to use those for the AOC first and then use Tuition & Fees up to the maximum $4000 that produces any benefit there and then carry any remaining Tuition & Fees over to the 8815.
Perhaps an example helps
Tuition & Fees: $4,600
Scholarships: (1,000)
Net Tuition & Fees: 3,600
Books & Supplies: $1,200
Is there any reason why I can't take the Books & Supplies and $2,800 of the Net Tuition & Fees for the AOC and then carry the remaining $800 to the 8815 for the Savings Bond calculation? I have not found anything that addresses this, so it appears to be okay, but I am wondering if I am overlooking something/
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