Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
The PELL and TAP (NYS grant, fyi) covered her qualifed tuition expenses, unless there is some refundable qualified expenses she may claim of which we're unaware?

In 2009, books became a qualified expense on the federal return. They probably aren't reflected in the numbers on the 1098-T. Depending on whether the Pell grant and TAP exceed the qualified tuition billed by the community college, she might be able to claim some qualified expense for the American Opportunity Credit, which is 40% refundable.

On the NY side, books still aren't qualified expense. So the NY tuition credit is out, since the grants cover the qualifying expenses.

If the work study is earned income, she should get a W-2. But as Phil notes, she won't be able to get EIC unless she is at least 25 years old or has a qualifying child.

We were really hoping to show her how to file her own taxes, pretty much for the firt time.

If there's a VITA program close to where she goes to school, I'd recommend she use that. The people there will see enough cases of tuition credits for both federal and NY purposes that they should find whatever credits she's eligible for. If she were sitting down in front of me, I'd take a close look at the tuition and at whether she might qualify for the NY real property tax credit (NY Form IT-214). That one is typically so small that a paid tax preparer will charge more for the form than the credit is worth, and the taxpayer only gets it if phase of the moon aligns correctly with her income and rent.

Of course, most if not all of the credits don't happen if she can be claimed as a dependent on her parents' return.

Patzer
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.