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xzebra06
In the 2006 case where a below phase-out taxpayer pays
out-of-pocket $14k of qualifying tuition for the same
dependent-student (and all other qualifying rules are met),
can anybody provide an authority for claiming a Lifetime
Credit of 20% x $10k and also claiming a Tuition and Fees
deduction for $4k?, (or any combination), where there is no
double benefit (credit and deduction) for the same expenses.
The applicable IRS pub and most discussions says that the
Lifetime Credit and the Tuition Deduction cannot be claimed
"as a double benefit" in the same year "for the same
individual." However, the meaning of this could reasonably
be interpreted to mean a double benefit "for the same
expenses."
A well known financial adviser recently writes that a Hope
or Lifetime credit *can* be combined with the Tuition
deduction - "but not for the same expenses." This is
different than the literal reading of the IRS pub. Now that
I have thought about it, I'm not certain that the financial
adviser is right or wrong.
Rereading IRC 222 and 25A, and the regs, there is ambiguity
and the word "expenses" is often used. Also, all examples
are for smaller tuition amounts which seem to imply rules
for a non-duplication of credit/ deduction benefits for the
*same expenses.*
Would appreciate any comments. Okay to tell me if it seems
I'm trying to rewrite the statute too!, but it is not
crystal clear.
out-of-pocket $14k of qualifying tuition for the same
dependent-student (and all other qualifying rules are met),
can anybody provide an authority for claiming a Lifetime
Credit of 20% x $10k and also claiming a Tuition and Fees
deduction for $4k?, (or any combination), where there is no
double benefit (credit and deduction) for the same expenses.
The applicable IRS pub and most discussions says that the
Lifetime Credit and the Tuition Deduction cannot be claimed
"as a double benefit" in the same year "for the same
individual." However, the meaning of this could reasonably
be interpreted to mean a double benefit "for the same
expenses."
A well known financial adviser recently writes that a Hope
or Lifetime credit *can* be combined with the Tuition
deduction - "but not for the same expenses." This is
different than the literal reading of the IRS pub. Now that
I have thought about it, I'm not certain that the financial
adviser is right or wrong.
Rereading IRC 222 and 25A, and the regs, there is ambiguity
and the word "expenses" is often used. Also, all examples
are for smaller tuition amounts which seem to imply rules
for a non-duplication of credit/ deduction benefits for the
*same expenses.*
Would appreciate any comments. Okay to tell me if it seems
I'm trying to rewrite the statute too!, but it is not
crystal clear.
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