Education expenses can be claimed as a tax credit on an itemized return, but under what circumstances? For instance, does a long-term course of study as an electrician count as a 4-year post-grad program?
According to income tax experts H&R Block, the American Opportunity Credit, or AOC, may be claimed by individuals who are working toward an educational credential such as a certificate or bachelor’s degree. That’s it.
H & R Block also advises its clients to look at the Lifetime Learning Credit as tuition and fees may be claimed under its rules as a deduction. One caveat is that the school must be eligible, and the courses must be helpful toward getting or improving career-related skills. A person does not have to be working toward a degree of any kind to claim this tax credit.
In fact, both the tuition and fees deduction and the Lifelong Learning Credit may be taken together, but the taxpayer must use different expenses to qualify. Go online to IRS.gov to consult Publication 970 about the Lifetime Learning Credit and the deduction for tuition and associated fees.
Another taxes and education question comes up regarding CLEP tests. Students wonder if the testing fees are deductible. Experts at H & R Block say no they are not for a couple of reasons.
CLEP tests garner an individual education credits for life experience or knowledge. However, as there is no real instruction or course being taken at an eligible educational institution, the CLEP test expenses are not legitimately deductible. This may be a source of frustration for some people who are enrolled in college or about to start and are trying to get ahead of the game as far as course credit goes. However, the IRS very narrowly defines what fees do and do not qualify as a deduction.
Go online to H & R Block at hrblock.com to get answers to more tax-related questions.
Filing taxes for the first time can be nerve racking and it is worse if you are late with your preparation. You may experience challenges gathering all your information so that is why it is important to plan ahead so that you are on time with your filing.
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As you reminisce on your children and your fun times, you will remember that taxes were something that you did not worry about. Now that you are filing for the first time, you have to make sure it is done correctly. Visit TurboTax.com today to review all the benefits available for you, which include an easy to navigate site and guaranteed results. Be sure to check out TurboTax.com.
Welcome to the July 18, 2013 edition of Tax Carnival Ecstasy. In this edition we have 5 great articles starting with Daniel’s letter to the IRS disputing an insufficient funds charge. Bill Smith looks at reasons to adjust your w-4 withholding at work this year. And John Schmoll has investment advice for your retirement investing. Hope you like all the articles, bookmark, share, tweet and come back real soon.
John Schmoll presents Finding Strength in Our Lack of Investment Control posted at Frugal Rules, saying, “Investing in the stock market can be rife with emotion as stocks go up and down. While there is a lot we can’t control, there is much we can. By focusing on what we can control you can set yourself up for effective investing and start you down the road of investing for long term needs like retirement.”
John Schmoll presents What Makes a Company Worth Investing In posted at Frugal Rules, saying, “There are many things that you can look at if you’re interested in investing in stocks. By following some of the basics you can start to build a stock portfolio that will serve you well and help set you up for long term needs like retirement.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
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