Disaster Area Education Credit

[DMICPA]

This is sooooo confusing.

Taxpayer attended college in a Mid-Western Disaster area in 2008 and took the modified Lifetime Learning credit with the higher rate. No problem here.

Now fast forward to 2009. Same taxpayer attending the same college.

BUT in 2009 there is no disaster area as there were no Midwest disasters so why would the student be able to claim the Midwest disaster rate. It looks as though the form has not changed since 2008 but circumstances certainly have.

Is the IRS saying that once you attend a college in a Mid Western Disaster Area you can continue to claim the higher rate for the life of the education? So if the taxpayer was in a disaster area in 2008 they can claim the disaster area rates until graduaction in 2012 or farther?

Help!

[Jesse]

This is sooooo confusing.


Is the IRS saying that once you attend a college in a Mid Western Disaster Area you can continue to claim the higher rate for the life of the education? So if the taxpayer was in a disaster area in 2008 they can claim the disaster area rates until graduaction in 2012 or farther?

Help!

Some of the counties have carried over, however only the counties in Table 1 of Pub 4492b. I am not aware of anything that allows thru graduation just because that is where you started school.

http://www.irs.gov/pub/irs-pdf/p4492b.pdf

[DMICPA]

Disaster Area Education

Jessie:

You are correct. I checked and the disaster area designation was carried over to 2009.

So, the taxpayer gets the higher deduction for 2008 and 2009. After that, it looks to have been phased out. We will see what next yea'rs education form looks like.