A (MFJ) taxpayer filed Form 8863 along with Form 1040 (2009). AGI was $120842, after deducting $4000 for his own Tuition and Fees for college. Form 8863, Part II Hope Credit on Line 4 showed Tentative Hope credit of $1800, which he claimed for his dependent daughter. However, he could not get any credit as reflected on Part V of Form 8863, due to AGI limitation of $120000. He anyway filed Form 1040 attaching Form 8863.
There was an error. He should have claimed American Opportunity Credit for his daughter on Part I of Form 8863, which would have allowed $1500 nonrefundable credit and $1000 refundable credit, for a total of $2500. Daughter's qualified education expenses were more than $4000 and she was attending college, but NOT in Midwestern Disaster Area.
My suggestion was to file Amended Return Form 1040X for 2009 and claim American Opportunity Credit of $2500.
My question related to a note printed on Form 8863, Part II Hope Credit - "Use this part if you are claiming the Hope Credit for a student attending school in a Midwestern Disaster Area and ELECT TO WAIVE the computation method in PART I for all students". Only other student on the return is the tapayer himself who claimed $4000 Tuition and Fee deduction.
Since he filed original return with Form 8863, would he still be able to claim the American Opportunity Credit on an Amended Return 1040X, not withstanding "ELECT TO WAIVE" clause printed on form 8863.
Appreciate and thanks for any comments from readers.
There was an error. He should have claimed American Opportunity Credit for his daughter on Part I of Form 8863, which would have allowed $1500 nonrefundable credit and $1000 refundable credit, for a total of $2500. Daughter's qualified education expenses were more than $4000 and she was attending college, but NOT in Midwestern Disaster Area.
My suggestion was to file Amended Return Form 1040X for 2009 and claim American Opportunity Credit of $2500.
My question related to a note printed on Form 8863, Part II Hope Credit - "Use this part if you are claiming the Hope Credit for a student attending school in a Midwestern Disaster Area and ELECT TO WAIVE the computation method in PART I for all students". Only other student on the return is the tapayer himself who claimed $4000 Tuition and Fee deduction.
Since he filed original return with Form 8863, would he still be able to claim the American Opportunity Credit on an Amended Return 1040X, not withstanding "ELECT TO WAIVE" clause printed on form 8863.
Appreciate and thanks for any comments from readers.
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