American Opportunity Credit Eligibility Question


J

JHB

I wonder if someone can help me with this.

I am doing the taxes for my daughter in law, who is attending night
school 3 nights a week with the goal of obtaining a Certificate in
Culinary Arts. Her goal is to change careers and improve her income.
She will be taking a full course of studies over a period of 1 1/2
years and will graduate with a Certificate. The question is whether
she will be eligible for the "American Opportunity Credit" treatment
on her taxes, and not whether there is some other tax treatment that
will bring back some of the paid tuition.

I ran things through TurboTax and it appeared to feel that she WAS
eligible, but I want to be certain before we move forward with
claiming that.

Your help is much appreciated

John Baker
 
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J

JoeTaxpayer

I wonder if someone can help me with this.

I am doing the taxes for my daughter in law, who is attending night
school 3 nights a week with the goal of obtaining a Certificate in
Culinary Arts. Her goal is to change careers and improve her income.
She will be taking a full course of studies over a period of 1 1/2
years and will graduate with a Certificate. The question is whether
she will be eligible for the "American Opportunity Credit" treatment
on her taxes, and not whether there is some other tax treatment that
will bring back some of the paid tuition.

I ran things through TurboTax and it appeared to feel that she WAS
eligible, but I want to be certain before we move forward with
claiming that.

Your help is much appreciated

John Baker
I trust she and your son don't make more than $180K? (If they do, good
for them. But no credit)

http://www.irs.gov/newsroom/article/0,,id=211309,00.html

This is a great Q&A from my friends at IRS dot gov. It's pretty
comprehensive.
Joe
 
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R

removeps-groups

On 3/3/11 6:23 PM, JHB wrote:
I trust she and your son don't make more than $180K? (If they do, good
for them. But no credit)

http://www.irs.gov/newsroom/article/0,,id=211309,00.html
The AOC is only available for the first 4 years of post-secondary
education, usually the undergraduate degree (but I suppose you could
skip undergrad and go straight to grad school or some specialized
school and still take the AOC). If she already did her under-graduate
degree then she has to take the lifetime credit.

http://www.irs.gov/publications/p970/ch03.html

It is 20% of the first $10,000 in expenses, or $2,000 max, and phased
out between 100k and 120k for married filers. If you claim an
exemption for your son and daughter-in-law then you can take the
credit on your tax return.
 

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