Tax question regarding the GI bill and the eligibility for the hope credit and the lifetime learning credit.?

Question

when filing with turbotax there is a question when claiming the educational tax credits asking how much educational assistance i recieved to pay for college. since the money from the gi bill is sent to me and not to the college like most other kinds of financial assistance, can i leave that section blank and still claim the credit?

the problem is when i put in the money i recieved from the gi bill, then my qualifying tuition is reduced to zero because it is less. So basically what i am asking is whether or not the gi bill legally counts as education assistance when it comes to this situation.

please only give answers if you have experienced this situation before or if you have an accurate answer to the question
thanks

Answer 1

No, you cannot claim the credit. The VA is paying the expense.

Seven years of tax preparation.

don

Answer 2

I have claimed both one among those credit throughout the time of the last 2 years... a million. the money you get in funds back is what you overpaid. the credit are quantities that are GIVEN to you once you provide the mandatory data that you've been in college. it really is like identifying to purchase college then getting a rebate you weren't watching for. 2. neither is solid to finance your education, those are tax credit (loose funds) that are given to you once you already paid for faculty. What it does is decrease your taxable income hence supplying you with a higher refund. or in case you owe, it reduces your taxable income hence decreasing the quantity you ought to owe had you not been in college. 3 & 4. The 2007 Federal style 8863 it truly is the style you opt on to apply to get the credit states the desire credit can in hardship-free words be claimed for 2 years for the same pupil. The lifetime credit should be claimed all years, yet they could't be claimed jointly! you gained't get this funds before college, you receives it each 3 hundred and sixty 5 days after the perfect semester. so that you'll get carry of a form from the college that states what you paid the previous tax 3 hundred and sixty 5 days for training in hardship-free words expenditures it truly is all you may declare for those credit and then you declare it on your taxes. it really is extremely user-friendly. Google style 8863 and browse the teachings.