1040 line 40 question

[Thien Sinh]

What is the name of your state? Maryland

Hi!
Hope someone could help me as I am helping my friend file her 2004 tax. On line 40 of 1040, it tells to subtract line 39 from line 37. Line 39 I have $4850 (Standard deduction for single), and for line 37 I only have $3451, since she is still a student and didn't work much. Apparently if I do the subtraction, it will a negative number! How do I do it?

Second question, is it better to take the Hope Scholarship and Lifetime Learning Tax credit (line 49 on 1040) or Tuition Deduction (line 27 on 1040)??

Thanks for all the help!!

-TS

 

[Snipes5]

Line 40 is zero. If you read the instructions, they tell you that if the number is less than zero, put zero.

Neither of those will be any help at all, as their is no taxable income, therefore there is no benefit from either a credit or a deduction.

Snipes

 

[Thien Sinh]

Thank you very much, Snipes!!!!