Showing posts from September, 2015

Your Taxes: An Alternative Education tax Credit

Our yearly tax returns can be the key to opening doors to new sources of financial support.  In connection with the last blog, we are discussing Tax Credits related to forms of higher education, like colleges, universities, and technical or trade schools.  We will now focus on the Lifetime Learning Credit and its requirements.  There is no class time requirement for the credit.  The student could attend classes on a less than full-time basis and still qualify.  However, the classes must be part of a Bachelor's or Master's degree program or related to maintaining or improving job skills.  Only tuition and fees directly related to enrolling or attending these classes are qualifying expenses.  The lifetime Learning Credit is unique in that it is not refundable.  It provides no benefit for those who owe no tax.  The maximum credit is $2000 per Tax Return , no matter the number of students.  Income limits play a large role in this tax credit as well.  The Adjusted Gross Income

Your Taxes: Tax Credit for Education

    There is a source of support that is available to the lessen the cost of higher education for taxpayers.  Your 2014 (this year) and 2015 (next year) tax return will determine if you qualify for college tax credits.  The sooner it is filed, the faster it can be claimed.  This is true for students filing on their own, parents claiming degree-seeking children as dependents, or even the spouse of a student.  In our blog for this week and next, we will examine the qualifications of the 2 major education Tax Credits and what they mean.  This week we will look at the American Opportunity Tax Credit.     This Tax Credit offers a maximum yearly amount of $2,500 per student .  More than one student can be claimed on a tax return for this credit.  Its goal is to help pay for qualified education expenses, such as, school tuition and other related fees.  Room and board is not covered.  One benefit of the American Opportunity Tax Credit is that up to 40% of it is refundable.  This means that