tuition credits/deductions...


T

Taxlover

As I understand it, my income it too high to get any tuition
credits/deductions on my son.
It was recommended that I not take him as a deduction and then he can get
some sort of benefit on HIS tax return. But I don't find that; his income
is too high for anything also.
Is there something I am overlooking?
 
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A

Arthur Kamlet

As I understand it, my income it too high to get any tuition
credits/deductions on my son.
It was recommended that I not take him as a deduction and then he can get
some sort of benefit on HIS tax return. But I don't find that; his income
is too high for anything also.
Is there something I am overlooking?

If your son's income is too high for an education credit, I'll bet
it's too high for you to claim him as a dependent.


But .... if you can claim him as a dependent and cannot claim an
Education credit because of your AGI, you might be able to claim
a tuition and fees deduction, which has a higher threshold amount.


And if you don't even qualify for a tutition and fees deduction,
you can do this: Not claim a deduction on your son, and let your
son claim an education credit. He would not be able to claim
a dependency exemption on himself though.


IRS Publication 970 covers both education credits and tuition
and fees deduciton.
 
A

Alan

Taxlover said:
As I understand it, my income it too high to get any tuition
credits/deductions on my son.
It was recommended that I not take him as a deduction and then he can get
some sort of benefit on HIS tax return. But I don't find that; his income
is too high for anything also.
Is there something I am overlooking?
If your son is your dependent and you do not get any tax benefit
from actually claiming the exemption, you can disclaim the
exemption. Your son may not claim his own exemption as he is
still your dependent, but he may use the tuition and fees
incurred for his higher education as either a tax deduction or
tax credit on his own return. As either of these benefits are
subject to being phased out due to AGI, it is possible that your
son may not get any benefit from this election.
 
A

Arthur Kamlet

If your son is your dependent and you do not get any tax benefit
from actually claiming the exemption, you can disclaim the
exemption. Your son may not claim his own exemption as he is
still your dependent, but he may use the tuition and fees
incurred for his higher education as either a tax deduction or
tax credit on his own return.
This works for the Education tax credits, but does not work for
the Tuition & Fees Deduction.
 
A

Alan

Arthur said:
This works for the Education tax credits, but does not work for
the Tuition & Fees Deduction.
You are correct. In fact, if you are the only one eligible to
claim the exemption and disclaim it for a dependent, no one gets
the deduction.
 
D

D. Stussy

Alan said:
You are correct. In fact, if you are the only one eligible to
claim the exemption and disclaim it for a dependent, no one gets
the deduction.
Since he has an income, did he use any of his money to support himself? If
so - and at least 10% and no one did 50%, can't the parent sign over the
exemption per agreement on form 2120? Or did the recent re-working by
Congress a couple of years ago make that no longer an option?
 
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A

Arthur Kamlet

Since he has an income, did he use any of his money to support himself? If
so - and at least 10% and no one did 50%, can't the parent sign over the
exemption per agreement on form 2120? Or did the recent re-working by
Congress a couple of years ago make that no longer an option?

I don't think this would work. First, I don't think a multiple support
agreement includes as one of he ten percenters, the person being
supported. Second, for this particular deduction, if you could claim
the dependency exemption for the student, and under a multiple
support agreement you could, you are the only one allowed to claim.
And you must also pay the tuition.
 

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