Not a dependent, tuition credit, which tax form???

Question

I'm hoping a tax expert is out there somewhere.

I'm no longer claimed as a dependent by my parents, I payed a good amount of college tuition this year, and also earned a good deal of money. Which form should I use? I heard I can only claim the tuition credit with a 1040A, but is that a lot more complicated than the 1040EZ?

Answer 1

You can't claim education credits on 1040-EZ, so yes you'll have to file a 1040A or 1040, and a form 8863 to calculate education credits. 1040A has a lot more lines on it than the EZ, but you'll skip over most of them - read the instructions, and if a line doesn't apply to you, skip over it or put zero. On the form 8863, just take it one line at a time also, and follow the instructions. You can do it.

Answer 2

The 1040A is not necessarily more complicated. It just entails more. I actually like the express lane analogy. Anyway, the worksheet you need is Worksheet 2. You can put in your tuition on that one. If you are in your first two years, you qualify for the Hope Credit. If not, you still qualify for the Lifetime Learning. If you do qualify for the Hope, I recommend that you calculate that one as well as the Lifetime, as they offer different amounts. Generally the Hope is better, but I have seen cases in which the Lifetime generated better returns.

Answer 3

It is not more complicated, it is just that you have more to include than a 1040ez allows. A 1040ez is like the express lane, but if you have more items you need to include them in a 1040a. If you are not doing an itemized taxes, it should be just as easy or close to a 1040ez.