|
Tax Topic 12 - Education and Education Tax Credits
|
In this
tax topic you will learn the the different tax treatment of various
types of educational assistance. In addition, you will review the tax
benefits that may be available to you if you are saving for or paying
education costs for yourself or other students in your immediate
family. In addition, you will also learn how and when to you can take
business deductions for work-related education and the educational tax
credits available to your for higher education.
Use IRS Publication 970,
and
Form 1040 Instructions
(Form 1040 instructions only up to page 98)
to complete this tax
topic.
Please note:
Form 1040 Instructions (Form
1040 instructions only up to page 98) will be used for the rest of the
topics in the initial tax preparer certification course. You will be
responsible to answer questions from the Form 1040 instructions
booklet (up to page 98) on every topic so read it carefully.
Complete Form 1040, Form 8863 for
this topic.
Maria's family goes to school.
 |
Maria's daughter, Leticia Gonzalez, paid $2,000 for tuition fees
for herself to attend a qualifying community college full
time. Leticia had expenses used to claim the Hope credit in the
previous two years. |
|
|
Her son, Raul Gonzalez, also paid $1,800 tuition fees to attend the
same community college full time. However, Raul only attended school
for about a month, and he was not eligible for a refund of fees
paid. |
|
|
Her children are her dependents and she claims them on her return.
|
|
|
Leticia's SSN is 555-10-7500 and her date of birth January 20, 1992. |
|
|
Raul's SSN is 555-10-7501 and his date of birth February 20, 1993. |
|
|
This is the first year Raul attends college. Both Leticia and Raul
are enrolled to pursue their degrees. |
Maria is a not married. She provides a home for her son and daughter.
She is the only one that can claim her children and provided for her
family by herself. No one can claim her or her children as dependents.
She paid rent all year for a of $9,600.00.
Maria received a tax-free scholarship from Women for Education Inc.
The amount she received was $3,000 towards her studies to get a
nursing degree at the same community college her kids attend. All the
money was for enrollment and attendance as specified by the school.
|
|