Lifetime Learning Credit and Vehicle Tax?

Question

I HATE tax season, because I never know what to claim! I guess I should invest in a class, but anyway. I have a two two fold question:

1. I received my 1098-T from my school. The only lines on the form that have amounts are number 2 "Amounts billed for qualified tuition and related expenses" and number 5 "Scholarships or grants". Can I claim this? My student loans are deferred. I know that if I am able to claim, then it would be a Lifetime Learning Credit, since I'm completing a 4 year degree and I'm currently in my last year.

2. Can I also claim the interest that I paid on my auto loan or just the sales tax that was paid when I purchased it back in May?

Thanks for helping me out...totally clueless!!! :)

Answer 1

1. You can claim your tuition, books and mileage but not the scholarships or grants.
2. You can claim the sales tax, not the interest.
3. Taking a tax class is a great idea. I took the class from H&R block, it was about $150. I would not recomend working for them, the pay is auful.
RB

Answer 2

You can claim a Lifetime Learning credit for the amount that your tuition and related expenses is higher than your scholarships and grants. If the scholarships and grants covered the tuition and fees, then they're considered as already paid with tax-free money so you would not get a credit. If you paid the additional tuition with loans, that's still eligible for the credit since you'll have to pay it back.

Interest on an auto loan isn't deductible. Sales tax might be, but only if you itemize, and only if you choose to deduct sales tax rather than state and local income taxes. If you do all that, then there's a table with a sales tax amount to deduct for your state, family size and income - you could add sales tax paid on the car purchase to the amount in the table. If you don't itemize, then no, you can't deduct the car sales tax.

Answer 3

the question is have been you displaced because of the midwestern catastrophe of 2008/2009? as far because of the fact the education credit and the lifetime studying credit, the dates/skills are unrelated.

Answer 4

for any information regarding taxes go for the tax efiling online sites. here are some sites. go through them and get benifited by the deductions providing by them . good luck