Free Tax Tips

Posts Tagged ‘hope credit’

Can I use my textbooks that I use for college as a tax write off?

I am well aware of the Hope Credit, but the wording under the Hope Credit says that it can be used for tuition and related expenses. Can anyone help me out on this matter, I’m trying to use every tax break I can here. Any suggestion on if this is Ok, and if there is anything else I may use?

Question: What is the process to file my taxes if I am late and the IRS owes me for paying in too many taxes?

I am a 23 year old male, that will file at independent. I did not file my taxes for year 04 and 05. I filed for extensions in those years, but I am obviously overdue on the extension. The IRS would have approximately owed me $1500 for both years. I have capital gains in both years (1099) and I will file for the Hope Tax Credit in one year and the Deduction (I forget the name) in another.

1. Can I choose the year I file the Hope Tax Credit? I know that I can select two years, but I want to choose 05 because I have a larger payment to school.

2. What is the quickest way to receive my refund?

Answer: For 2004 tax year, you have until 4/15/2008 to file for a refund although I would not recommend waiting that long.

If your parents or someone else can claim you as dependent, then you cannot claim yourself.

The year in which you can claim the Hope Credit cannot be swapped around. If you are eligible, then take it. It is better than the others. You must be a first or second year college student (only the very first time). You must be pursuing a degree or credential. For 2004 and 2005, the maximum credit is $2,000. Dollar for dollar up to $1000 and 50 cents for every dollar spent after $1,000 and up to $2,000. Basically spent monies are for tuition mostly. Rarely books. For 2006, this rises to $1,650 maximum per eligible student.

The Lifetime Learning Credit is for any classes to acquire or improve job skills (a degree or certificate is good too). This is anytime after the first 2 years. Maximum is $2,000 per return. The credit is good for 20% of monies spent for tuition. So this means maximum money spent can be up to $10,000. 20% of $10,000 yields the maximum credit of $2,000.

For quicker refund, fill in the section with bank account and routing number and the IRS will direct deposit the refund to you. The other, very expensive, alternative is to get a Refund Anticipation Loan. File with a tax preparer who can file electronically for you and apply for the instant loan.

If your income is low enough, then you can qualify to get free tax return help and filing. Go to IRS.gov and do it yourself online or search for VITA and somebody will do it for you.

College aid seekers may welcome changes in application process - Sun, 17 Jan 2010 PST

Filling out the form for federal college aid used to be regarded as the equivalent of a root canal. Thanks to some much-needed steps toward simplification, the Free Application for Federal Student Aid is a bit less grueling for online applicants this year — perhaps just a routine cavity filling.

First Sporadic-E of the year!