"William Brenner" <wjbjr[at]webtv.net> wrote:

- quote -

If that's what IT says, then IT is wrong. The credit goes
to who gets the exemption, not vice versa.

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

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Look at the box immediately to the right of the quoted text.
You are on Page 13 of Pub 970 and the box to the right of
the quoted text makes it clear that if you claim the
exemption for your dependents they cannot claim the Hope
credit.

So Pub 970 does not disagree. It puts the above statement
inside a box to point out its importance.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Bob Sandler wrote:

- quote -

And directly to the right it says "If you claim an exemption
on your tax return for a dependent who is an eligible
student, then only you can claim the Hope credit based on
that dependent's expenses. The dependent cannot claim the
credit."

Phoebe

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Bob Sandler wrote:

- quote -

Look to the right of that paragraph. If you want the child
to claim the credit, you may not claim their exemption (and
they of course can't claim it, either).

Phoebe

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

William Brenner <wjbjr[at]webtv.net> wrote:

- quote -

I agree with the versa, not with the vice.

Your children cannot prevent you from claiming them as
dependents simply by attempting to take the education
credit.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Pub. 970 disagrees. It says:

"If there are qualified education expenses for your
dependent for a year, either you or your dependent, but not
both of you, can claim a Hope credit for your dependent's
expenses for that year."

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

It does say that, but I don't think that's right. Pub. 970
says:

"If there are qualified education expenses for your
dependent for a year, either you or your dependent, but not
both of you, can claim a Hope credit for your dependent's
expenses for that year."

"If there are qualified education expenses for your
dependent for a year, either you or your dependent, but not
both of you, can claim a lifetime learning credit for your
dependent's expenses for that year."

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Dick Adams" <rdadams[at]smart.net> wrote:

- quote -

You mean you haven't disowned them for not going to Carolina?

Gary

Moderator:
My three favorite four letter words are: Love, Free, and Cash.
The University of the Promised Land at Chapel Hill is not free.
BTW: Big game in Chapel Hill on Sunday.
UNC-CH 75 - The University of New Jersey at Durham 73.

--
E-mail to the above address is rarely read. If you want to
contact me directly, please send an e-mail to: gary at
gdgoodman dot com.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Dick Adams <rdadams[at]smart.net> wrote:

- quote -

If you claim them as dependents then they cannot claim the
Hope. Once tuition is granted a full concession by the
university, only the fees could be considered for the Hope.

- quote -

The Hope requires at least half time. See Pub 970. I covers
this pretty well.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Caution! Read the entire TurboTax entry. If I read it
correctly, it says that if your children claim the credit,
you cannot claim them as dependents. And vice versa.

I guess it means that you would have to pay the fees and
take the credit. In that case, dependency is not an issue.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

You should find your answers here. Bless Google. Your son's
situation is answered in the Hope section of the first
(Turbotax) link. Have fun.

http://www.google.com/search?hl=en&i...=Google+Search

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Dick Adams" <rdadams[at]smart.net> wrote

- quote -

Probably it does. The reduction in tuition (down to "free")
comes off the first dollars of qualified tuition, which
reduces the HOPE tax credits, possibly to $0. And from what
you say, the other fees paid are probably not going to be
qualified tuition in any event.

- quote -

HOPE may be unavailable, but the LifeTime Learning Credit
might be.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

rdadams[at]smart.net (Dick=A0Adams) wrote:

- quote -

First, Hope credits are available only for the first two
years of post-secondary education (generally freshmen and
sophomore years of college). Second, they are available
only for fees actually paid and "are qualified education
expenses" required for the completion of a course of study.
A Form 1098 ought to be issued by the college for qualified
expenses.

Pub 17 for 2004 discusses the subject at length, with
examples, starting on page 247.

- quote -

A course load equal to at least "half-time" attendance is
required for the Hope credit. But for the Lifetime Learning
Credit, the requirement is much looser, and can be based on
a single course taken toward the goal of a degree of some
sort.

A few years ago I ran across an unusual situation, where a
TP was attending college and had been awarded a "Joe and
Mary Smith" [not the real name] fellowship (created by a
couple in the community who felt they wanted to encourage
higher education). The college issued a 1098 to the TP, who
sought my advice on return preparation. After research, I
determined that since the fees were actually paid (and not a
_free_ scholarship), the 1098 could be used by the actual
student -- with the view that the payment by a third party
should be construed as a "gift" and non-taxable to the
student, but a qualified payment of college expenses.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My children get free tuition in the University of Maryland
System. They still have to pay fees. (And I mean they and
not we.) Does this arrangement adversely affect their Hope
Tax benefits?

Also what if my son goes part-time?


Dick

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->