Student Registers in August, Classes Start in September

[NewBee]

Can someone confirm that if a college student registered for classes (full-time) on August 28 but didn't start classes until September, the student is considered to be a full-time student in August.

I just read this in the Individual Tax Review book, p. 8, Other Dependency Rules, but I cannot find any IRS reference source for it. If true, how long has it been as such?

[Bert73]

Publication 970

On page 10 of Who May Qualify( for the American Opportunity Credit, but I believe it applies for the Lifetime credit and the Tuition & Fees deduction too.)

What Expenses Qualify
The following rules will help you determine if you are The American opportunity credit is based on qualified
tax education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax
return. Generally, the credit is allowed for qualified education expenses paid in 2009 for an academic period beginning in 2009 or the first three months of 2010.

Generally, you can claim the American opportunity credit if
For example, if you paid $1,500 in December 2009 for
qualified tuition for the spring 2010 semester beginning
January 2010, you may be able to use that $1,500 in figuring your 2009 credit.

[Bert73]

I think I need to wake up!

Try page 13 of the same publication, second column (Enrolled atleast Half time)

[taxmom34]

i think most colleges base full time or part time on the number of credits the student has signed up for. maybe someone can correct me if i'm wrong

[Lion]

Question is on Dependency

I think the original question was about dependency. A child can remain your dependent if a full-time student for part or all of any five months. Therefore, New wanted to know if August counted as a month in that dependency calculation if tuition was paid then but classes didn't start until September. I'm thinking NO, but would look it up if it were my client. However, if this is for freshman year of college, was the student in high school full-time January - June? If so, then a student for more than five months. In fact, unless the student was not in school at all until September, the August month won't matter.

[erchess]

Here is what I was taught

The month counts even if he is full time for only one day in the month. Conceivably a person could in one month register full time one day cancel it and get money back the next and do this in four more months at four different schools and he counts as a full time student for five months out of the year which in turn means that he can be a dependent child through the end of the year during which he turns 23. That's right turns 23 because the full time student has to be under 24 at the end of the year.

I've always felt a little uneasy about this and if anything like it comes up in my practice now that I no longer work for the ppl who told me this, I will do further research.

[oceanlovin'ea]

just starting college

If this is the first time registering for college, did the student graduate in May or June from high school and then entering college in fall.

If so, definitely student for more than 5 months.

Linda

[NewBee]

To Satisfy Age Test for Dependency

The question is to help satisfy the Age Test for a qualifying child on being a dependent. Child's age at the end of 2009 was 20. She worked part-time from January through August 2009. She did register for school in late August. However, classes didn't start until the first week of September. Course load was full-time.

Because you have to be a student for any 5 months of the calendar year, if you count just the months she was actually in class, it would be 4 and therefore would not satisfy the Age Test. But if August can be counted, then it she would qualify. I still cannot find any reference. Thanks.

[NewBee]

Graduated more than a year ago

Student graduated more than a year ago. Took more than a year off. Then went back to college. She did not attend any school from January - August

[dtlee]

Possible Source

The refefence you cite appears to be based on the topic of Private Letter Ruling 9838027, 9/18/1998. Here is the headnote:

Taxpayers can claim dependency exemption for daughter who attended classes in full-time course of study at university from Sept. to Dec.: daughter was enrolled for some part of 5 months of calendar year, so meeting definition for student under Reg. §1.151-3(b), where she registered for classes in Aug. even though classes didn't begin until Sept. Interpretation of “enrolled” as “registered” is consistent with reg's intent to allow individual registered for semester for full-time study to qualify as student.

.

[tacks]

Nice find, DTLee,

Looks as if you nailed it.

[dtlee]

Yes, but it is not necessarily a good idea to base guidance in a review book on a PLR.

Still, it makes sense if you read it.