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Author: COLLEGEMOM2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121333  
Subject: LIFETIME CREDIT Date: 10/11/1999 12:40 PM
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How do you go about claiming this credit? My daughter is attending school away from home for the first year. She has received a loan to cover her dorm expenses, but we pay her tuition. Can this be deducted?
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Author: zorloc Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19561 of 121333
Subject: Re: LIFETIME CREDIT Date: 10/11/1999 7:46 PM
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If your daughter is in school for her first year you are able to use the Hope Education credit, which is much better.

Hope: 100% of first $1000, and 50% of next $1000 for a total maximum credit of $1500.

Lifetime Learning: 20% of first $5000 for a total maximum credit of $1000.

Thus, with the Hope Ed. Credit you can lob up to $1500 of the top of your taxes (not income to be taxed) saving you $1500.

All you need to do is keep track of your expenses, and fill out form 8863 to include with your 1040.

There is an income phase out of $40,000-$50,000 ($80K-$100K for married filing jointly).

jbw

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Author: AlyKat Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19571 of 121333
Subject: Re: LIFETIME CREDIT Date: 10/11/1999 11:14 PM
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If your daughter is in school for her first year you are able to use the Hope Education credit, which is much better.

Hope: 100% of first $1000, and 50% of next $1000 for a total maximum credit of $1500.

Lifetime Learning: 20% of first $5000 for a total maximum credit of $1000.

Thus, with the Hope Ed. Credit you can lob up to $1500 of the top of your taxes (not income to be taxed) saving you $1500.

All you need to do is keep track of your expenses, and fill out form 8863 to include with your 1040.


I just wanted to add that the Hope Education Credit, the Lifetime Learning Credit and the ED IRA are all mutually exclusive. If you use the Hope or the Lifetime Learning you can't use money from the Ed IRA in that same tax year.

~AlyKat

There is an income phase out of $40,000-$50,000 ($80K-$100K for married filing jointly).

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