Education Credits

[Yardley CPA]

Please verify my understanding that you can only take one education deduction per year, per dependent student (or tax payer), correct?  If you are eligible for the Tuition and Fee expense you cannot take the American or Lifetime for the same dependent student, is that correct?  Tuition and Fee is maxed at $4,000...is that per dependent student or per return?  

 

Appreciate any info you can provide!

 

[Pacun]

You are correct, you can use only one education credit per student. Let's say the student paid $20K for education, you cannot use 6K for AOC or $14K for Lifetime education credit. Tuition is limited to per return.

[Abby Normal]

Speaking of education credits, I was doing one last night and switching between AOC, lifetime & deduction to see which gave lower tax. Deduction was giving lower tax and I almost didn't give it a second thought because it was a higher income return, but my spidey senses told me I should look at the 8863. Well, lo and behold, there was no 8863 in the return. I almost blew that one!

 

Would be nice if ATX alerted you to the fact that no 8863 was in the return when you choose. It probably would have added it when I left the detail input screen but I didn't try that.

[DevM]

If you have selected AOC and you are out of EdExp worksheet ATX automatically adds 8863.

Actually it automatically adds forms based on your selection of credit, but you need to get out of EdExp worksheet.

[Jack from Ohio]

Please verify my understanding that you can only take one education deduction per year, per dependent student (or tax payer), correct?  If you are eligible for the Tuition and Fee expense you cannot take the American or Lifetime for the same dependent student, is that correct?  Tuition and Fee is maxed at $4,000...is that per dependent student or per return?  

 

Appreciate any info you can provide!

You are completely correct.

[TAXMAN]

Can a self supporting 23 year old claim the AOC credit? Has not used any credits in prior year. TP does not live at home and maintains all his expenses. 1098-T half time box is checked. The way I worked through the requirements he can.

[RitaB]

Can a self supporting 23 year old claim the AOC credit? Has not used any credits in prior year. TP does not live at home and maintains all his expenses. 1098-T half time box is checked. The way I worked through the requirements he can.

Yes.