Advice Needed


A

Armando Silva

Hi, I am trying to do my taxes for this year (I have an extension) and
I am trying to include my student loan to get a reduction in my taxes
but I am lost on this since this is my first time trying to include
this. I have the form 1098-T (Tuition Payments Statement) and on the
front side has only two boxes filled with numbers ($$), Box #2 (Amounts
billed for qualified tuition and related expenses) and Box #4
(Scholarships or Grants).

What do I need to do (step by step if possible) and what other forms
do I need to get from the IRS ? (in any)

Thanks in advance !
 
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D

Dale Eastman

Armando said:
Hi, I am trying to do my taxes for this year (I have an extension) and
I am trying to include my student loan to get a reduction in my taxes
but I am lost on this since this is my first time trying to include
this. I have the form 1098-T (Tuition Payments Statement) and on the
front side has only two boxes filled with numbers ($$), Box #2 (Amounts
billed for qualified tuition and related expenses) and Box #4
(Scholarships or Grants).

What do I need to do (step by step if possible) and what other forms
do I need to get from the IRS ? (in any)

Thanks in advance !
--
"You take the BLUE PILL, you wake up in your own bed,
and you BELIEVE WHAT YOU WANT TO.
You take the RED PILL, you stay in WONDERLAND,
and I'll show you HOW DEEP THE RABBIT HOLE GOES." - Morpheus

red pill:
http://www.861.info/ <--- "They" don't want you to look here.
 
P

Paul

Armando Silva said:
Hi, I am trying to do my taxes for this year (I have an extension)
and I am trying to include my student loan to get a reduction in
my taxes but I am lost on this since this is my first time trying to
include this. I have the form 1098-T (Tuition Payments Statement)
and on the front side has only two boxes filled with numbers ($$),
Box #2 (Amounts billed for qualified tuition and related expenses)
and Box #4 (Scholarships or Grants).

What do I need to do (step by step if possible) and what
other forms do I need to get from the IRS ? (in any)

You get a tax credit based on the tuition paid, less any amount paid by
scholarships or grants (as they generally aren't repaid).
 
A

Armando Silva

Paul said:
You get a tax credit based on the tuition paid, less any amount paid
by scholarships or grants (as they generally aren't repaid).

Hi Paul, so does this means if I didn't pay out of my own pocket,
I can't get a tax credit?
 
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P

Paul

Armando Silva said:
Hi Paul, so does this means if I didn't pay out of my own pocket,
I can't get a tax credit?

If you pay the tuition through a loan (that you ~will~ repay, then it's
as-if you paid it, and it's deductible as part of the formula for any
credit. If it was paid for through a grant or scholarship that you ~will
not~ repay, then you don't get to take any deduction/tax credit.

If the tax laws hold, the interest on student loan repayments may also be
deductible.
 

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