Ok.. Tax Time Question from a College Student

[jmolayal]

I realize that for the Hope Credit you have worked towards a two year degree. My question is that in 2004 I finished my 2 year degree and started towards my BS at Iowa State. Can I apply all of my 2004 tuition under this hope credit? Some of it? Anyone know? Thanks in advance..

Jaison (A Hawkeye Fan, stuck in Cyclone Hell.)

 

[brtspears2]

I just picked up IRS Publication 970. I think unless you made like over $52k or claimed as a dependent, you can get it. Your school should produce some tax papers for you, as mine does.

 

[jmolayal]

Yeah.. School did give me the tax papers. But I wasn't sure on how to file the 4 year schools tuition costs... I'm thinking I can file everything for 2004 under the Hope credit, since I was working on my 2 year degree until then. We'll see I guess... Unless someone else knows for sure. LOL.

 

[EagleKeeper]

Ethically the credit should be prorated between the two year and four year degree.

Also, the after 2 years, falls under the lifetime learning.

If you itemize, then the tutition can be deducted as a possible business (2106) expense is it relates to your income.

As the above post indicates, you can not claim the deduction if you are a filed as a dependant.

 

[jmolayal]

Thanks Eagle..

I cannot be claimed as a dependent, so that is not an issue. Lets turn to a hypothetical for a moment...

Am I correct in assuming that turning it in under the Hope Credit gives me a larger return than under the lifetime?

Thanks.

 

[EagleKeeper]

Hope allows for 50% deduction.

Lifetime allows for 20%

You can not mix & match the two in the same year.

 

[jmolayal]

Interesting.. Thanks for the info Eagle. I think I know what to do now 😉

 

[EagleKeeper]

Originally posted by: jmolayal
Interesting.. Thanks for the info Eagle. I think I know what to do now 😉

You are welcome for the advice. Paypal is always accepted in amounts of $0.00