Education Deductions

[CJane]

What is the name of your state (only U.S. law)? MO

I'm working my way through the HR Block software for my taxes, as I've done every year since 2005.

This year though, I was a full-time student for the first time. My 1098-T isn't ready yet, and neither is the form in the software, but I do know what my total billing was for tuition, fees, etc.

I was billed a total of 7550.00. I do receive student loans and a Pell and SEOG grant.

What impact does this have on my taxes? Last time I was a full-time student, I was also a dependent of someone else.

Help?

 

[HappyWanderer]

What you were billed is not as important as what you paid.

What did you pay which was a qualified education expense? Which credit do you qualify for? (Hope or lifetime learning?)

 

[CJane]

What you were billed is not as important as what you paid.

What did you pay which was a qualified education expense? Which credit do you qualify for? (Hope or lifetime learning?)

I'm technically in my first two years of school. An adult. Don't know which one that qualifies me for.

I paid my tuition in full via loans and grants. I included additional fees (tech fees and "ERF" fees since the school supplies the text books). I don't think I had anything additional unless I can deduct mileage (school was 50 miles from home, I've since switched to online classes).

Am I missing anything?

 

[LdiJ]

I'm technically in my first two years of school. An adult. Don't know which one that qualifies me for.

I paid my tuition in full via loans and grants. I included additional fees (tech fees and "ERF" fees since the school supplies the text books). I don't think I had anything additional unless I can deduct mileage (school was 50 miles from home, I've since switched to online classes).

Am I missing anything?

The amount that you can claim towards the credit (if you are using the new American Opportunity Credit) is your tuition, tech adn ERF fees, and books, minus your grants. Loans count as you having paid the tuition.

The American Opportunity Credit is 40% refundable, so even if you zero out, and can't use it up top, you can still get 40% of it. You get a 100% credit for the first 2000.00 of allowable expenses, and 25% of the next 2000.00 of expenses. The max credit is 2500.00, and the max refundable credit is 1000.00.

 

[CJane]

The amount that you can claim towards the credit (if you are using the new American Opportunity Credit) is your tuition, tech adn ERF fees, and books, minus your grants. Loans count as you having paid the tuition.

The American Opportunity Credit is 40% refundable, so even if you zero out, and can't use it up top, you can still get 40% of it. You get a 100% credit for the first 2000.00 of allowable expenses, and 25% of the next 2000.00 of expenses. The max credit is 2500.00, and the max refundable credit is 1000.00.

Ok, so my tuition/fees was 7550.00. My grants totalled 6140.00. So I can claim 1410.00 towards teh credit. Right?

 

[LdiJ]

Ok, so my tuition/fees was 7550.00. My grants totalled 6140.00. So I can claim 1410.00 towards teh credit. Right?

Correct. Since you can claim 100% of the first 2000.00 out of pocket, that means you credit would be at least 1000.00, (assuming you zero out) or 1410.00 if you don't.