Education Credits

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Subject Author Date Education Credits dman81 01-27-2008  Re: Education Credits Paul Thomas 01-27-2008  Re: Education Credits Condor 01-27-2008
Posted by dman81 on January 27, 2008, 3:26 pm Please log in for more thread options Hi, I do my taxes using TurboTax and I recently found out that you can claim credit on borrowed money used to pay for your education. Can you guys tell me how I can claim this lost credit for this year? The missed credit was for 2006. Can it be rolled over or is it lost? Also can one just claim the maximum amount and save the rest for future years? I would be claiming the Lifetime Learning Credit. Please advise and thank you so much! Dan ========================================= MODERATOR'S COMMENT: If you meet the rules for claiming the LLC (See IRS Publication 970) you can amend your 2006 tax return by filing forms 1040X and 8863. If you paid the tuition, even if from a loan you must repay, in 2006, the tax credit must be filed for tax year 2006. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Paul Thomas on January 27, 2008, 4:17 pm Please log in for more thread options > I do my taxes using TurboTax and I recently found out that you can > claim credit on borrowed money used to pay for your education. Can > you guys tell me how I can claim this lost credit for this year? The > missed credit was for 2006. Can it be rolled over or is it lost? You'll have to prepare and file an amended 2006 return to take the 2006 cresit. Use Form 1040X for that purpose. The 2006 software might do that for you, or you'll have to go online and download a paper form - either way you have to mail it in. > Also can one just claim the maximum amount and save the rest for > future years? I would be claiming the Lifetime Learning Credit. > Please advise and thank you so much! No "saving" in this area. Use what you can, the rest is lost for tax purposes. -- Paul A. Thomas, CPA Athens, Georgia -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Condor on January 27, 2008, 4:18 pm Please log in for more thread options > I do my taxes using TurboTax and I recently found out that you can > claim credit on borrowed money used to pay for your education. Can > you guys tell me how I can claim this lost credit for this year? The credit is claimed on Form 8863. Due to tax law changes enacted in late December, 2007 returns that include Form 8863 cannot be e-filed until February 11. Nor will processing begin for paper-filed returns with Form 8863 attached until February 11. > The missed credit was for 2006. Can it be rolled over or is it lost? To claim the credit for 2006 you will need to file an amended return on Form 1040X with the 2006 version of Form 8863 attached. The processing delay mentioned above does not affect amended returns. Here are links to Form 1040X and to the 2006 Form 8863. http://www.irs.gov/pub/irs-pdf/f1040x.pdf http://www.irs.gov/pub/irs-prior/f8863--2006.pdf > Also can one just claim the maximum amount and save the rest for > future years? No. The credit is allowable only for the year the expenses were incurred. Unused education credits cannot be carried back or forward to other tax years. Condor -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Tax Credits or Cuts With Education August 3, 2008, 10:22 pm Interpreting pub 970- education credits December 23, 2008, 2:19 pm Tuition and education credits-who gets the deduction July 19, 2007, 10:32 pm employer paid education- use for credits? February 11, 2009, 3:54 pm Energy Credits October 6, 2008, 11:04 am Estimated tax and credits question February 5, 2007, 8:22 pm Energy Credits for 2006? August 6, 2007, 10:31 pm How do I maximize benefit of tax credits? 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