I need to know if I can qualify for the Hope Or Life Time Learning credits. I have a loan that is deferred and get financial aid from FASFA. Current out of pocket expenses are paper, printer ink, office supplies(ie staplers and such). Does any one know stipulations for these credits.
2007-03-02 07:53:00 · 7 answers · asked by nix 26 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You should check out Publication 970 (2006), Tax Benefits for Education
You can claim credit for loans that are deferred.
2007-03-02 08:12:04 · answer #1 · answered by Primdiva 3 · 0⤊ 1⤋
The Hope and Lifetime learning credits are for tuition and fees, not for the types of items that you list. If your tuition and fees are paid for with financial aid other than loans, then you don't have a credit coming. Tuition and fees paid for with loans are eligible for the credits. The Hope credit can be taken for two tax years, if you're in the first two years of post-secondary education - for college, than would be freshman and sophomore years. The Lifetime Learning credit doesn't have those restrictions.
2007-03-03 19:16:15 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
For starters, the Hope Credit is allowed for students in the first two years of post-secondary education (usually a freshman or sophomore in college). You must be enrolled at least half-time and in a program that leads to a degree. The Lifetime Learning Credit is not limited to the first two years.
Qualified expenses are tuition and fees required for enrollment. Fees must be paid to the school. Your miscellaneous expenses for supplies are not qualified expenses.
Read more about education credits below:
http://www.irs.gov/taxtopics/tc605.html
http://www.irs.gov/pub/irs-pdf/p970.pdf
2007-03-03 04:53:26 · answer #3 · answered by tma 6 · 0⤊ 0⤋
Without more details, this question is not a "yes" or "no." There are a few requirements you must meet. See www.irs.gov, and search for Hope Credit. There you will be able to see if you qualify. By the way, the out-of-pocket expenses you listed probably do not qualify - because they must be required by your school for enrollment and attendance AND must have been paid directly to your school.
2007-03-02 21:53:12 · answer #4 · answered by catielovesjesus 1 · 0⤊ 1⤋
Don't forget that if you paid the tuition and required fees with the proceeds of the loan, YOU paid them and those payments qualify for the credits. Also, depending on your age and other issues, it may be that your parent(s) are eligible to use the credits.
2007-03-03 11:12:12 · answer #5 · answered by CarVolunteer 6 · 0⤊ 0⤋
You should have received a 1098-T with the expenses and the amounts you received for scholarships and grants. If your parents claim you they get to claim the expenses and you have to show the tuititon and grants as income. The other out of pocket expenses are not deductible.
2007-03-02 16:02:04 · answer #6 · answered by Rooster 1972 5 · 0⤊ 0⤋
Hope is a 2 year limit. Only can take it 2 times forever, save em for the big years. Life time is continual, but you can only take the credit for tuition, not books etc. You cannot deduct out of pocket for either (i think not sure there ) you should get a form from the school for what you can deduct
check with the irs web site for complete details
2007-03-02 16:05:08 · answer #7 · answered by Ann S 3 · 0⤊ 3⤋