Education benefits

[Joe Btfsplk]

Have I got all this right? (probably not quite)
Student loan interest --Form 1098-E--can only be deducted by the parent if the loan is in the parent's name.
Student loan interest, even if in the child's name, cannot be deducted if the chld is claimed as a dependent by the parent.

A parent can claim Tuition and fees which indicate the child's name on the Form 1098-T if the child is a dependent.
A child cannot claim Tuition and Fees, even if the child pays for it, if the child is claimed by the parent.
Tuition and fees paid by a dependent can be deducted by the parent???

A parent can claim a Hope or Lifetime learning credit for one child and claim a tuition and fees deduction for another child.

A parent can only claim one type credit or deduction per student; i.e. you can't claim a Hope credit for both Jack and Jill.

You could claim a Hope credit for one child and a Lifetime learning credit for the other child???

[gkaiseril]

Do not forget that one can not only take the credits but also the adjustment deduciton or job related education. One can not use the monies for more than one benefit.

[Joe Btfsplk]

Do not forget that one can not only take the credits but also the adjustment deduciton or job related education. One can not use the monies for more than one benefit.

Good point, but what is the 'adjustment deduction'? If I've ever heard of it, I must call it something else.

[Dervis]

Adjustments

Good point, but what is the 'adjustment deduction'? If I've ever heard of it, I must call it something else.

I think he means Tuition and Fees deduction, which is an adjustment to income.

[newtotaxbooks]

Have I got all this right? (probably not quite)
Student loan interest --Form 1098-E--can only be deducted by the parent if the loan is in the parent's name.
Student loan interest, even if in the child's name, cannot be deducted if the chld is claimed as a dependent by the parent.

A parent can claim Tuition and fees which indicate the child's name on the Form 1098-T if the child is a dependent.
A child cannot claim Tuition and Fees, even if the child pays for it, if the child is claimed by the parent.
Tuition and fees paid by a dependent can be deducted by the parent???

A parent can claim a Hope or Lifetime learning credit for one child and claim a tuition and fees deduction for another child.

A parent can only claim one type credit or deduction per student; i.e. you can't claim a Hope credit for both Jack and Jill.

You could claim a Hope credit for one child and a Lifetime learning credit for the other child???

It is my understanding that the tuition and fees deduction can only be taken by the person paying for it. In that case if the taxpayer claimed the child and the child payed the tuition no one would be able to take the tuition and fees deduction.

[BP.]

Have I got all this right?
A parent can only claim one type credit or deduction per student; i.e. you can't claim a Hope credit for both Jack and Jill.

Yes, one type of credit or deduction per student; no, you CAN claim Hope for ea student.

[GIMoe]

Credit vs Deduction

It is my understanding that the tuition and fees deduction can only be taken by the person paying for it. In that case if the taxpayer claimed the child and the child payed the tuition no one would be able to take the tuition and fees deduction.

You are correct. According to the chart on top of page 12-2 in TTB, the Hope or Lifetime Learning can be taken when either TP, dependent, or third party pays. But to get the deduction, the TP must have paid. You can indeed claim either credit for each dependent. If 2 or more dependents qualify for Hope, they can both take Hope.

[BP.]

It is my understanding that the tuition and fees deduction can only be taken by the person paying for it. In that case if the taxpayer claimed the child and the child payed the tuition no one would be able to take the tuition and fees deduction.

Yes to your second sentence. Re your first sentence, if tp pays tuition, and is ineligible to claim dependent, student CAN take T&F deduction. See pub 970, super chart on p. 35.

[Black Bart]

Joe

Others have said it different ways and here's mine. These are excerpts from a newspaper column by noted financial advisor Jane Bryant Quinn:



"The Hope credit...you can claim as many credits as you have qualified students. If your twins are freshmen, you get up to $3,000."

"The Lifetime Learning credit can be taken by any student, of any age, for any number of years. It's available even for minimal study -- say, an adult education course or a single course to improve your job skills."

"They're for you, your spouse, or your dependent child. If you're divorced and claim your child as your dependent, but your spouse pays the tuition, neither of you gets the credit."

"You can't use both credits at once for a single student. But you can claim a Hope credit for one child and a Lifetime Learning credit for another on the same tax return."

"When you claim your child as a dependent, the credits go on your tax return, not the child's. When the child is independent, the child gets the credit if he or she pays the tuition."

[S T]

Well Spoken

BB,

It is refreshing to have an answer instead of a quote from the regulations, references are important, but I think most of us post because we can't understand what we are reading.

Thank you,

Sandy

[BP.]

"The Hope credit...you can claim as many credits as you have qualified students. If your twins are freshmen, you get up to $3,000.

The figure should be $3,300 ($1,650 ea.)

[BP.]

These are excerpts from a newspaper column by noted financial advisor Jane Bryant Quinn: If you're divorced and claim your child as your dependent, but your spouse pays the tuition, neither of you gets the credit.

This is the first I've seen this rule. Cannot find language in pub 970 or TTB excluding credit for divorced people if ex pays tuition and tp claims student. TTB p. 12-3 middle left implies opposite. There are some very easy to follow charts in pub 970. But I'm not finding ref for this. Any other authority besides JBQ on this?