Education Credits not worth claiming?

Question

Educational Tax Credits not worth claiming?
I go to a community college where the tuiton is fairly cheap ( as most are, since it's not a university). For the past two semesters, my tuition has totaled to about 400 dollars or less. Is it really worth it to have my parents claim the education credit on their taxes to save money? Will they really save any money off of it? Their combined income is over 100 grand . Also if someone can verify this that would be helpful. I also read or heard somewhere that if you don't pay that much, you really don't qualify for it and it's not worth it to claim.


PS- I know i posted this before but I felt it necessary to repost. To those who gave their answers before, thank you very much!

Answer 1

Who Can Claim the Deduction
Generally, you can claim the tuition and fees deduction if all three of the following requirements are met.

You pay qualified education expenses of higher education.

You pay the education expenses for an eligible student.

The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return.

“Qualified education expenses” are defined on the next page under What Expenses Qualify. “Eligible students” are defined later under Who Is an Eligible Student. A “dependent for whom you claim an exemption” is defined later under Who Can Claim a Dependent's Expenses.

Who Cannot Claim the Deduction
You cannot claim the tuition and fees deduction if any of the following apply.

Your filing status is married filing separately.

Another person can claim an exemption for you as a dependent on his or her tax return. You cannot take the deduction even if the other person does not actually claim that exemption.

Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return).

You were a nonresident alien for any part of the year and did not elect to be treated as a resident alien for tax purposes. More information on nonresident aliens can be found in Publication 519, U.S. Tax Guide for Aliens.

You or anyone else claims a Hope or lifetime learning credit in 2006 with respect to expenses of the student for whom the qualified education expenses were paid.


Publication 970
http://www.irs.gov/publications/p970/ch06.html

Answer 2

if it saves your parents any money at all - is it worth it?
Whatever amount the credit comes to is a direct reduction in their tax liability.
If their income is too high then the credit could be limited.
I like to say - if it keeps $1 in your pocket instead of Uncle Sam's then its worth it.