Educ Credit


B

bill

I claim my daughter as a dependent (qualifying child) and
want to take the Hope Credit. My mother in law paid part of
her tuition with a 529 distribution.

Can I still take the Hope Credit if part of the tuition was
paid this way?

tks all

bw
 
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P

Phil Marti

bill said:
I claim my daughter as a dependent (qualifying child) and
want to take the Hope Credit. My mother in law paid part of
her tuition with a 529 distribution.

Can I still take the Hope Credit if part of the tuition was
paid this way?
Yes, but you must reduced qualified expenses by the amount
paid by your mil. See page 11 of IRS Publication 970.
 
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P

Paul Thomas, CPA

bill said:
I claim my daughter as a dependent (qualifying child) and
want to take the Hope Credit. My mother in law paid part of
her tuition with a 529 distribution.

Can I still take the Hope Credit if part of the tuition was
paid this way?
No.
 
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A

A.G. Kalman

Paul's answer is technically incorrect. The question was
whether a Hope Credit could be taken even though some part
of the tuition was paid with a tax-free 529 distribution.
Phil's answer was correct. The Hope Credit is still
available but one can not include the expenses that were
paid for by the tax-free distribution.
 
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P

Paul Thomas

Paul's answer is technically incorrect. The question was
whether a Hope Credit could be taken even though some part
of the tuition was paid with a tax-free 529 distribution.
Phil's answer was correct. The Hope Credit is still
available but one can not include the expenses that were
paid for by the tax-free distribution.
I read the last part of the question wrong. Thought they were
wanting to take the credit for the amount paid with the 529
from grandma.
 
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B

bill

Paul's answer is technically incorrect. The question was
whether a Hope Credit could be taken even though some part
of the tuition was paid with a tax-free 529 distribution.
Phil's answer was correct. The Hope Credit is still
available but one can not include the expenses that were
paid for by the tax-free distribution.
If the tuition was reduced by the 529 Distr. in NY,is the
entire amount used to reduce the tuition amt or just the
amount that grew tax free? i.e 3000 put into 529 plan and
4000 out thus 1000 was tax free but in NY, the principal is
allowed to be deducted from total income. The 529 Distr.
was sent to college direct!

bw
 
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