Tuition and TAx Deductions

Fun2, BSN, RN · Feb 12, 2005

are any of you using the hope or life time learning tax credits on your returns? i am thinking that i may qualify a for part time graduate deduction by using the life time learning deduction.:balloons:
apparently, if your agi (married filing jointly is less than 160) you can take up to $4000/yr?
anyone doing this?

I have used it in the past. For some reason, I think I have used all my educational tax credits up. (I haven't done my taxes yet for the 2004 year, and I haven't been in school in the last several years.)

BUT!! If you can get a tax credit, DO IT!! Every little bit helps.

Marie_LPN, RN, LPN, RN · Feb 12, 2005

I used the Hope credit for 2 years. I got the whole amount back.

(i'm single, with no dependents, though)

DDRN4me · Feb 12, 2005

We have used both credits at one time or another.Both of my dds are in school and so am i so we spend beaucoup $$$ on education. I know it made the difference between paying out and a return a couple of times. go for it..you need the cash more than uncle sam!

SarasotaRN2b · Feb 12, 2005

note of caution: if you are getting any scholarships or grants and it covers your allowable educational expenses, you cannot claim this.

kris

nursepotter05, RN · Feb 12, 2005

I have taken the Hope for two years, after you are a junior, you can't take the Hope credit, you take the lifetime learning credit. Your school should have sent you a statement called a 1098-T showing your tuition expenses and scholarships, grants, ect. of course you subtract the scolarships and such from the total amount of tuition, if there is anything left, that amount is what you claim. It got me $910 extra on my tax return this year! I do my taxes with Turbo Tax, and it is really easy. You just plug in the amounts it asks you to. Turbo tax will ask you a series of questions to determine if you are eligible for the credit. If you qualify for the credit, I definately would take it :balloons:

begalli · Feb 12, 2005

note of caution: if you are getting any scholarships or grants and it covers your allowable educational expenses, you cannot claim this.
kris

kris, i don't think this is completely true. it depends on what the scholarships or grants are used for and if they are considered taxable or not.

i'm not a tax person but i used both the hope and lifelong learning credits to the maximum in the late '90's for my daughters.

read publication 970 carefully:

http://www.irs.gov/pub/irs-pdf/p970.pdf

BunnyBunnyBSNRN, ASN, BSN · Feb 12, 2005

call the irs

i know this may not sound like something you want to do, but trust me. i called them when i did our taxes (two years in a row) and they have been very helpful, patient, and kind. also, they will give you the right answer.

good luck to you!

Traveler · Feb 12, 2005

If you are going to school to update or improve yourself in the area in which you are employed (if you are a nurse and going to school to get a BSN or other advanced degree) you can take the excess (if you go over the max deduction elsewhere on your taxes because you paid high tuition with little assistance) if you itemize your deductions over 2% of your AGI. I was able to claim the full $4k to reduce my AGI and then take another 7k on miscellan. with my work expenses.

Nurse Alissa · Feb 12, 2005

Ive never heard of these deductions, and I dont think Im eligible because my parents still claim me, but does this apply to undergrad degrees? I know I will be getting married before I finish school, and any little bit will help! Thanks!

begalli · Feb 13, 2005

I dont think Im eligible because my parents still claim me, ...but does this apply to undergrad degrees?

Your parents might be able to take the credits.

Yes, it applies to undergraduate degrees.

medsurgnurse, RN · Feb 13, 2005

If you are going to school to update or improve yourself in the area in which you are employed (if you are a nurse and going to school to get a BSN or other advanced degree) you can take the excess (if you go over the max deduction elsewhere on your taxes because you paid high tuition with little assistance) if you itemize your deductions over 2% of your AGI. I was able to claim the full $4k to reduce my AGI and then take another 7k on miscellan. with my work expenses.

How did you have 7K in work related expences? Was it because you are a traveler, or am I missing something. Heck, I just found out this year that could itemize my uniforms and equipment.