Hope Credit Question

#3 03-04-2005, 12:32 AM

Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:
- quote -

> PayShint wrote:

> > A friend claimed the Hope Credit in 2002 and was refunded
> > $308.00 as a result of the Credit in 2002's taxes. She
> > received a refund on some of those expenses in 2003 from the
> > University and it would have cancelled out the $308.00 she
> > ultimitly received back. According to the instrucions for
> > this year I need to put it back on her return on line 43
> > with ECR noted next to it. My question is, does she owe that
> > tax even if the Hope credit for this year would cancel out
> > the additional tax when added to her tax of $951.00 for this
> > year? IE Hope credit is cancelling her tax of 951.00 and
> > would also cover the additional 308.00 tax due from 2002 if
> > it can be used this way.

> Let's see now, Hope credit for 2002, and Hope credit for
> 2004. First, does that mean no Hope taken for 2003?
> I'm guessing it was taken for 2003; right? And if so, how
> can you take the Hope credit for 2004?
> But since Hope credit "taken" (whether repaid or not) is
> good for only two years, in which case it would appear that
> this is THE year to switch to the 20% LLC.

Now I know why I'm single. I dont pay attention to dates of
any kind. I actually meant she took it in 2003 for the first
time so she is still eligable.

Thanks

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#2 03-03-2005, 10:37 PM

Poorly worded question, I'm afraid. If you're asking
whether she has to include her $308 tax refund in her taxes
this year, the answer is No as long as she's including the
tuition/fees refund on her return as 'ECR'.

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#1 03-03-2005, 06:11 AM

"PayShint" <nowaynohow[at]nospamyahoo.com> wrote:

- quote -

> A friend claimed the Hope Credit in 2002 and was refunded
> $308.00 as a result of the Credit in 2002's taxes. She
> received a refund on some of those expenses in 2003 from the
> University and it would have cancelled out the $308.00 she
> ultimitly received back. According to the instrucions for
> this year I need to put it back on her return on line 43
> with ECR noted next to it. My question is, does she owe that
> tax even if the Hope credit for this year would cancel out
> the additional tax when added to her tax of $951.00 for this
> year? IE Hope credit is cancelling her tax of 951.00 and
> would also cover the additional 308.00 tax due from 2002 if
> it can be used this way.

Yes, it must be repaid.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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03-03-2005, 05:52 AM

PayShint wrote:

- quote -

> A friend claimed the Hope Credit in 2002 and was refunded
> $308.00 as a result of the Credit in 2002's taxes. She
> received a refund on some of those expenses in 2003 from the
> University and it would have cancelled out the $308.00 she
> ultimitly received back. According to the instrucions for
> this year I need to put it back on her return on line 43
> with ECR noted next to it. My question is, does she owe that
> tax even if the Hope credit for this year would cancel out
> the additional tax when added to her tax of $951.00 for this
> year? IE Hope credit is cancelling her tax of 951.00 and
> would also cover the additional 308.00 tax due from 2002 if
> it can be used this way.

Let's see now, Hope credit for 2002, and Hope credit for
2004. First, does that mean no Hope taken for 2003?

I'm guessing it was taken for 2003; right? And if so, how
can you take the Hope credit for 2004?

But since Hope credit "taken" (whether repaid or not) is
good for only two years, in which case it would appear that
this is THE year to switch to the 20% LLC.

ChEAr$,
Harlan Lunsford, EA n LA
Mon 28 Feb 2005

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#-1 02-28-2005, 07:54 PM

A friend claimed the Hope Credit in 2002 and was refunded
$308.00 as a result of the Credit in 2002's taxes. She
received a refund on some of those expenses in 2003 from the
University and it would have cancelled out the $308.00 she
ultimitly received back. According to the instrucions for
this year I need to put it back on her return on line 43
with ECR noted next to it. My question is, does she owe that
tax even if the Hope credit for this year would cancel out
the additional tax when added to her tax of $951.00 for this
year? IE Hope credit is cancelling her tax of 951.00 and
would also cover the additional 308.00 tax due from 2002 if
it can be used this way.

Thanks in advance for your consideration.

Jerry Mellinger

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