tax tips for those facing college bills
TRANSCRIPT
TAX TIPS FOR THOSE FACING COLLEGE BILLS
If you, your spouse or a dependent headed off to college last fall, some of your costs may save you
money at tax time.
Source: “Tax tips for those facing college bills, IRS offers suggestions for education tax credits” by Jeb Bing / Pleasanton Weekly http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills
The AOTC is worth up to $2,500 per year for an eligible student. You may claim this credit only for the first four years of pursing higher education. Up to 40% of the AOTC is refundable. This means that if you are eligible, you can receive up to $1,000 of the credit as a refund, even if you do not owe any taxes.
AMERICAN OPPORTUNITY TAX CREDIT
You can save up to $2,000 on your tax return with the Lifetime Learning Credit. There is no limit on the number of years that you can claim the LLC for an eligible student. However, you cannot claim the LLC and the AOTC for the same tax year.
LIFETIME LEARNING CREDIT
You may use qualified expenses to figure your credit, whether it is the AOTC or the LLC. These include the costs you pay for tuition, fees and other related expenses for an eligible student. Refer to IRS.gov for more on the rules that apply to each credit.
QUALIFIED EXPENSES
In most cases, you should receiveForm 1098-T, Tuition Statement, from your school by Feb. 1, 2016. This form reports your qualified expenses. A copy of your form 1098-T, Tuition Statement is also sent to the IRS.
FORM 1098-T
If you are in the U.S. on an F-1 Student Visa, the tax rules generally treat you as a non-resident alien for federal tax purposes. To find out more about your F-1 Student Visa status, visit U.S. Immigration Support.
NON-RESIDENT ALIEN
TO LEARN MOREVISIT
WWW.RELIANCETAXGROUP.COMOR CALL US AT
(877) 597-0153
Source: Bing, Jeb. “Tax tips for those facing college bills.” Pleasanton Weekly.com. Pleasanton Weekly, 13 August 2015. Web. 26 January 2016. <http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills>