Not qualify for Hope and lifetime... 2006 Tax benefit for Education Credit!!!?

Question

My income is too high to qualify for Hope and Lifetime Education Tax credit. But I saw couple days ago at Yahoo News post "13 Tax Breaks " mentioned: (College Tuition for those have high income...) on line 35 of Form 1040 I just write "T'' to the left of that line for College Tuition up to $4,000.00 in 2006, since my daughter tuition is $4,529.00. Please help me if you know anything.
Thanks

Answer 1

You have to meet the requirements to claim the Tuition and Fees deduction
One of which is income limitations
http://www.irs.gov/publications/p970/ch06.html#d0e6566

Publication 970
If you are eligible to claim Higher Education Tuition and Fees Deduction:

Taxpayers must file Form 1040 (PDF) to take this deduction for up to $4,000 of tuition and fees paid to a post-secondary institution. It cannot be claimed on Form 1040A.
The deduction for tuition and fees will be claimed on Form 1040, line 35, "Domestic production activities deduction." Enter "T" on the dotted line to the left of that line entry if claiming the tuition and fees deduction, or "B" if claiming both a deduction for domestic production activities and the deduction for tuition and fees. For those entering "B", taxpayers must attach a breakdown showing the amounts claimed for each deduction

Answer 2

The tuition and fees deduction allows you to deduct the cost of tuition and school fees for higher education (college) of up to $4,000 per year. You cannot deduct the cost of books or school supplies, only tuition and school fees. These costs must be paid for education for the taxpayer, spouse or your dependent. The income limitation is a little bit higher than qualifying for the Hope or Lifetime Learning Credits. If your MAGI (Modified Adjusted Gross Income) exceeds $80,000 ($160,000 if you are married filing joint), then you do not qualify. Unlike the Hope and Lifetime Learning Credits, there is no phaseout. Once your MAGI exceeds the limit, then you get zero for the deduction.

Under the current tax laws, you can only claim this deduction on your 2006 and 2007 tax return.

Answer 3

Lifetime Learning Credit for College Juniors, Seniors, Graduate Students and working Americans pursuing lifelong learning to upgrade their skills. For those beyond the first two years of college, or taking classes part-time to improve or upgrade their job skills, the family will receive a 20% tax credit for first $5,000 of tuition and fees through 2002, and for the first 10,000 thereafter. The credit is available for net tuition and fees (less grant aid) paid for post-secondary enrollment after June 30, 1998. The credit is available on a per-taxpayer (family) basis, and is phased out at the same income levels as the HOPE Scholarship.


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Answer 4

If you are filing "Married Filing Joint" and your "Modified Adjusted Gross Income" (MAGI) is between $130,000 and $160,000 you can claim up to $2000 in tuition and fees on the 1040 line 35 (put a "T"on the line). If your MAGI is over $160,000 then you are not eligible for the deduction.

If you are filing Single, Head of Household or Qualifying Widow(er) and your MAGI is between $65,000 and $80,000 you can claim up to $2000 in tuition and fees on the 1040 line 35 (put a "T"on the line). If your MAGI is over $80,000 then you are not eligible for the deduction.

Answer 5

You can claim up to $4,000 dollars on qualified tuition expenses, such as tuition, books and supplies. It should be on the front page of your 1040 as an adjustment to AGI . You can always claim this expense, hwoever, like in your case credits are phased out depending on how high your income is

Answer 6

I read that yahoo article too. My tuition is about 15000 a year--I use Turbo Tax--and it asks me the cost of my tuition and automatically deducts the 4000 on line 35. Turbo only asks for the tution costs so I'm assuming that's all that tax deductible.