BE wrote:

- quote -

The rules state that only you can claim the credit if the
child is your dependent. The only way for the child to
claim the credit, is for you to forgo the dependency
exemption. The child could then claim the credit but the
child can NOT claim her own personal exemption because she
is your dependent. In other words, the $3200 exemption is
lost!

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"BE" <n3wsr3ad3r_|[at]|_sbcglobal.net> wrote:

- quote -

No. The instructions for the form state this.

- quote -

Run the numbers and find out. There is no way anybody
online could possibly know.

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

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BE wrote:

- quote -

If she is your dependent, she cannot claim any education
credits. If you decide not to claim her on your return, she
still cannot claim her personal exemption, but she can claim
her education credits.

Can't really say which is better without knowing actual
numbers about your income and the amount of the education
expenses.

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BE wrote:

- quote -

no. (for all I know).

- quote -

if she could (i.e. if you didn't claim her) it would depend.
She can't get more back than she paid but depending on your
income you may get less than that.

Depending on how complicated your return is otherwise, I'd
figure it both ways.

Maren
Palms, Etc.: Tropical Plant Seeds - Hand-made Jewelry
- Plants & Lilikoi
http://www.jach.hawaii.edu/~maren/palms_etc/

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BE wrote:

- quote -

Ahah! You answered the question already when you said she
is your dependent. This I take it means that you/y'all
supplied more than half of support. Therefore, she can not
even BE anyone else's dependent.

- quote -

Moot point. Since she IS your dependent, only you/y'all if
joint return, may use the form 8863 credits. She, nor
anyone else, may not.

ChEAr$,
Harlan Lunsford, EA n LA
Fri 3 Feb 2006

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"BE" <n3wsr3ad3r_|[at]|_sbcglobal.net> wrote:

- quote -

Only if you do not claim her personal exemption as a
dependent. (She can't claim the exemption in either case.)

- quote -

Probably not, but the only way to tell for sure is to run
the numbers both ways.

--
Phil Marti
Clarksburg, MD

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BE wrote:

- quote -

First, it is NOT a deduction, per se, but a nonrefundable
CREDIT against any tax liability.

- quote -

Yes, provided the person who COULD claim her as a dependent
does NOT do so. That still would NOT allow her to claim her
own personal exemption, but would allow her to claim the
credit if she qualifies. Since she is your dependent, YOU
could claim the credit on your return (even if the
educational expenses were paid with her money). You have a
choice to make.

- quote -

As a dependent (can't claim her personal exemption), her
taxable income would only be about $3,000. The tax liability
would only be about $300, and that would be the extent of
any educational credit to her.

The same criteria would apply to you and your spouse - the
value of the credit is dependent on your tax liability. That
may be higher than your daughters, so would result in a
greater value of the credit to you. Run the numbers and see.

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My dependent daughter wishes to claim this deduction.

1. Can she do so as someone else's dependent?

2. Will the benefit/refund be larger if claimed on our
(married, filing jointly) return, rather than hers (she
made about $8000 last year)?

Thanks

Bee

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >