Deducting College Expenses

Deducting College Expenses

campusMake sure you get a 1098-T form from the college, university or trade school that your child attends.   The form may been to be downloaded from an on-line site or the school may have mailed it to your child.


-if your child is under 24 and a full time student for any part of 5 months during the year then they are likely still your dependent for tax purposes. If they qualify as a dependent then there isn’t an option for them to claim themselves on their tax return.

-amounts paid for tuition with loans, in either your name or your child’s name, still count toward college education credits for tax purposes

-there are various education credits that we will look into for you. Some require the student be at least 1/2 time and an undergraduate student.  The school must be eligible to be in Federal Student Loan Programs.

-Hope Scholarship Credit: 100% of the first $2,000 paid and 25% of the next $2,000 paid.  Maximum credit is $2,500.   $1,000 of this can even be a Refundable Credit meaning you can still have it even if you paid no income tax.  Restrictions apply of course.

-Lifetime Learning Credit: 20% of the first $10,000 paid.

Keep track of amounts spend on course books also.



Linda Reinhardt

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