The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: HOPE Scholarship Credit--2 or 3 tax years?||Date: 2/1/1999 10:18 PM|
|Author: TMFTaxes||Number: 9373 of 125203|
[[The Tax FAQ on the HOPE, & other sources, talk about the HOPE applying to
the first two years of post-secondary education. Can this be three tax years for a
"normal" college student beginning freshman year in year 1, freshman &
sophomore years in year 2, and completing the sophomore year [second year of
post-secondary education] in the third tax year?]]
Nope. The law was written this way to discourage "professional students". Heck, I have clients kids that have been in college for 6 years now, and have just gotten into their third year of education.
The only real way around this, since you must deal with calendar years (and not necessarily school years) is to prepay your 2nd half of education expenses late in calendar year 2. That may or may not help you.
But remember that even if the HOPE credit expires, you may STILL qualify for the Lifetime Learning Credit.
[[ The IRS pub. on this topic implies two tax years as well as two scholastic years.]]
Check out IRS Publication 970. You can download/read IRS Publication 970 at the IRS web site.
Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|