College Student in 2006? ... Read this before doing your taxes!!! - TwoWheelForum: Motorcycle and Sportbike forums
 
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post #1 of 13 (permalink) Old 03-14-2007, 12:51 PM Thread Starter
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College Student in 2006? ... Read this before doing your taxes!!!

After talking with enough people at work and around about town, I have found that most college students are not aware of the breaks you get when filing your taxes...

If you are paying for school yourself, whether that is out of pocket or via student loans, you are eligible for some excellent breaks... If your parents are paying, they can be eligible for these and if you are lucky they will provide you with a cut...

All of the following tax credits are available to students who incurred some fees for school and were enrolled at least half time for (I believe) one full term (semester, quarter, trimester, whatever your school runs on)... Grants and scholorships work against you on these, but for people like me who pay it all themselves these are really nice to have:

Hope Credit
The Hope Credit is only available for students in their first two years of school. You can only use this credit twice in your lifetime... File this and receive $1,500... I don't remember, but I think there is a stipulation with the amount of money spent on school for that year... Something like it must be over $4k...

Lifetime Learning Credit
The Lifetime Learning Credit is available for any student, regardless of amount of school completed... You can file it as many times as you like, but cannot file it at the same time as the Hope Credit or Tuition and Fees Credit (see below)... This one pays 20% of whatever you paid in school that year up to $10k... So that means you get a maximum of $2,000.

Tuition and Fees Credit
I know nothing about this one as I just heard about it... Turbo Tax did not seem to find me eligible for that one...

If you are just starting off in school, I'd recommend doing the Hope Credit your first year because you probably have not incurred that much debt... After that weigh your options between the Lifetime Learning Credit and Hope Credit for your 2nd year to determine which one pays the most... After that go Lifetime Learning Credit all the way... If I weren't finished with school, I'd be looking harder at the Tuition and Fees Credit...

So for all you college students out there who want some extra cash for keggers or to pay off debt (yeah right!)... Unkie Sam has the hook-up for ya...
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post #2 of 13 (permalink) Old 03-14-2007, 12:55 PM
 
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WTF OSP... i could have used that info 4 weeks ago.
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post #3 of 13 (permalink) Old 03-14-2007, 01:01 PM Thread Starter
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Originally Posted by NONE_too_SOFT View Post
WTF OSP... i could have used that info 4 weeks ago.


I had taken for granted the fact that I knew this and others may not... After discussing this with some of my reps, I found that NOBODY knows about this stuff... If you want a silver lining... You can use this info next year!
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post #4 of 13 (permalink) Old 03-14-2007, 02:19 PM
 
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yeah unless your an adult and not living with your parents and your parents dont claim you then you can take these deductions. If you can still be claimed under your parents it is better to let them file them under their taxes. Unless you make more as a college student then they do which is unlikely. Work a deal out with your parents so that whatever they save by having you on their taxes they reimburse you. I hate tax season. Right when it is getting perfect riding weather.
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post #5 of 13 (permalink) Old 03-14-2007, 02:22 PM
 
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Originally Posted by NONE_too_SOFT View Post
WTF OSP... i could have used that info 4 weeks ago.
ammend your return if it helps
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post #6 of 13 (permalink) Old 03-15-2007, 01:01 AM
 
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hmmm I'll check it out. tho I bet my dad already knows about it...

good info, repped
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post #7 of 13 (permalink) Old 03-15-2007, 07:34 AM
 
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Yes, unfortunately if your parents don't pay for your college... this wont help you.
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post #8 of 13 (permalink) Old 03-15-2007, 08:17 AM
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Quote:
Originally Posted by onesickpsycho View Post
If you want a silver lining... You can use this info next year!
Hum if I remember correctly.. you can sill adjust your taxes now.. and for the last 3 years. And, if you had someone like H&R Block do your taxes they can do it for free....
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post #9 of 13 (permalink) Old 03-15-2007, 08:37 AM
 
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Hum if I remember correctly.. you can sill adjust your taxes now.. and for the last 3 years. And, if you had someone like H&R Block do your taxes they can do it for free....
yeah but H&R block probably messed them up in the first place
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post #10 of 13 (permalink) Old 03-15-2007, 09:01 AM
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how true....
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post #11 of 13 (permalink) Old 03-15-2007, 11:56 AM
 
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Good info. I was never eligible for any of those credits because of the GI Bill, but I definitely looked into them.
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post #12 of 13 (permalink) Old 03-15-2007, 11:58 AM
 
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Originally Posted by onesickpsycho View Post
After talking with enough people at work and around about town, I have found that most college students are not aware of the breaks you get when filing your taxes...

If you are paying for school yourself, whether that is out of pocket or via student loans, you are eligible for some excellent breaks... If your parents are paying, they can be eligible for these and if you are lucky they will provide you with a cut...

All of the following tax credits are available to students who incurred some fees for school and were enrolled at least half time for (I believe) one full term (semester, quarter, trimester, whatever your school runs on)... Grants and scholorships work against you on these, but for people like me who pay it all themselves these are really nice to have:

Hope Credit
The Hope Credit is only available for students in their first two years of school. You can only use this credit twice in your lifetime... File this and receive $1,500... I don't remember, but I think there is a stipulation with the amount of money spent on school for that year... Something like it must be over $4k...

Lifetime Learning Credit
The Lifetime Learning Credit is available for any student, regardless of amount of school completed... You can file it as many times as you like, but cannot file it at the same time as the Hope Credit or Tuition and Fees Credit (see below)... This one pays 20% of whatever you paid in school that year up to $10k... So that means you get a maximum of $2,000.

Tuition and Fees Credit
I know nothing about this one as I just heard about it... Turbo Tax did not seem to find me eligible for that one...

If you are just starting off in school, I'd recommend doing the Hope Credit your first year because you probably have not incurred that much debt... After that weigh your options between the Lifetime Learning Credit and Hope Credit for your 2nd year to determine which one pays the most... After that go Lifetime Learning Credit all the way... If I weren't finished with school, I'd be looking harder at the Tuition and Fees Credit...

So for all you college students out there who want some extra cash for keggers or to pay off debt (yeah right!)... Unkie Sam has the hook-up for ya...

Dude you ar3e so repped for that...
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post #13 of 13 (permalink) Old 03-15-2007, 01:09 PM Thread Starter
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Originally Posted by 1hottbikechic View Post
Yes, unfortunately if your parents don't pay for your college... this wont help you.
I think you mean, if your parents DO pay for your college... this won't help you.

True, but your parents CAN file for these credits and if they are nice (which I would guess they are if they are paying your way through school) they will cut you a slice from the refund...

Quote:
Originally Posted by Low View Post
Hum if I remember correctly.. you can sill adjust your taxes now.. and for the last 3 years. And, if you had someone like H&R Block do your taxes they can do it for free....
Last 3 years! My girlfriend never filed for those credits... MONEY!
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