Archive for the ‘Education’ Category

Six Facts about the American Opportunity Tax Credit

by P. Lewis Robinson
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Sep
7

There is still time left to take advantage of the American Opportunity Tax Credit, a credit that will help many parents and college students offset the cost of college. This tax credit is part of the American Recovery and Reinvestment Act of 2009 and is available through December 31, 2010. It can be claimed by eligible taxpayers for college expenses paid in 2009 and 2010.

Here are six important facts the IRS wants you to know about the American Opportunity Tax Credit:

  1. This credit, which expands and renames the existing Hope Credit, can be claimed for qualified tuition and related expenses that you pay for higher education in 2009 and 2010. Qualified tuition and related expenses include tuition, related fees, books and other required course materials. (more…)
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Five Ways to Offset Education Costs

by P. Lewis Robinson
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Apr
28

College can be very expensive. To help students and their parents, the IRS offers the following five ways to offset education costs.

1.     The American Opportunity Credit This credit can help parents and students pay part of the cost of the first four years of college. The American Recovery and Reinvestment Act modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student. Generally, 40 percent of the credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes. (more…)

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Credits & Deductions for Higher Education

by P. Lewis Robinson
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Oct
8

For those of you who attend college or have children who attend college, you may want to learn more about the higher education tax credits and deductions offered by the IRS.  The following list shows the credits and deductions available for the year 2009 with a brief summary of each. In the coming weeks, more detailed write-ups will follow for each individual item.

  • Hope Credit – not to be confused with the HOPE Scholarship/Grant available to Georgia students. This non-refundable credit is most beneficial to students in their first two years of post-secondary education and applies to tax years through 2008.

 

  • Lifetime Learning Credit –  no limit on the number of years the credit can be claimed, but it cannot be claimed in conjunction with the Hope Credit or American Opportunity Credit for the same student in the same year. This credit is often beneficial to graduate students.

 

  • American Opportunity Credit – modifies the Hope Credit for the 2009 & 2010 tax years, making it available to broader group of taxpayers. Many of those who are eligible will qualify for the maximum credit of $2,500 per student.

 

  • Tuition & Fees Deduction – deductions up to $4,000 can be taken for qualified education expenses paid for the taxpayer, spouse or any dependents. This deduction can be taken even if the taxpayer does not itemize.

 

  • Student Loan Interest Deduction – this deduction is available to taxpayers who paid student loan interest during the tax year. The maximum deduction is $2,500 and it can be taken even if the taxpayer does not itemize.
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8/31/09 – Computer As Education Expense Covered Under 529 Plan

by P. Lewis Robinson
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Sep
1

Did you know that in 2009 and 2010 the IRS is allowing computer-related items as qualified expenses under a 529 Plan?  Typically a 529 Plan was only used to pay for a college student’s tuition and books.  Now a student that is enrolled in an eligible educational institution can claim internet access, educational software, and other computer-related technology as qualified educational expenses.

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