I received a 1098-T form it shows all the amounts i have been billed. Most of the amounts are in loans that i have not paid on. When i enter this information into H & R Block tax calculator i get a substantial amount of refund back. They calculated it with the hope credit. Can i legally claim this if i have not started to pay on the loans.
2007-02-08 03:53:33 · 4 answers · asked by biged140 2 in Business & Finance ➔ Taxes ➔ United States
Also my first year of college was 2004-2005 and my second year was 2005-2006. Am i eligible for the hope credit. i guess you could say i finished my second year half way through.
2007-02-08 03:59:23 · update #1
To answer the second part of your question, you can claim the Hope Credit in two tax years only. If you have done that already, you cannot take it.
If you have not claimed in two tax years yet, you can claim provided you were no higher than a sophomore on 1.1.06.
2007-02-08 04:32:38 · answer #1 · answered by skip 6 · 0⤊ 1⤋
Yes you can still claim them for an education credit even if you haven't started paying back the loans. You owe the money, so that part is OK.
But if it's not one of your first two years of post-secondary education, you wouldn't be eligible for the Hope credit. You could take the Lifetime Learning credit though.
2007-02-08 04:47:08 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Even though you paid tuition with student loan money, you still qualify for the Educational Credits.As long as you meet all of the other qualifiications for claiming the credit.
Publication 970
http://www.irs.gov/publications/p970/index.html
2007-02-08 03:58:30 · answer #3 · answered by Rob 7 · 0⤊ 1⤋
Yes, because you are obligated to pay those loans when you finish school. It is the same as if you paid for your tuition using a credit card.
2007-02-08 03:57:44 · answer #4 · answered by jseah114 6 · 1⤊ 1⤋