|

|
1) Education Credit/Tuition and Fees Deduction.
Form 8863, Lifetime Learning Credit has been
increased to $10,000. Hope Credit is still $2,000 maximum tuition
amount. The Lifetime maximum credit is $2,000 whereas the Hope Credit
maximum is $1,500 for this year. The Tuition and Fees Deduction on the
front page of Form 1040 or Form 1040A adjustment amount is $3,000. With
a limitation of $1,500 credit and 2 years consecutive for the Hope
Credit in a low |
|
total
tuition year you may not want to claim the Hope Credit but rather the
Lifetime or the Tuition and Fees Deduction instead. Again, the Hope
requires a full-time student status for the year. If the student is in
High School and starts in September to college they will be a full-time
student for the year but may not have that much in total tuition paid for
post-secondary tuition.
2) Advance Child Tax Credit. In the
personal information section you will input the amount of Advanced Child
Tax Credit you received. If your filing status in Tax Year 2008 was
'married filing jointly' this amount may be one-half of the amount of the
check deposited into your bank account. One-half
of the amount is considered to be received by each spouse if your prior
filing status was married filing jointly. An Example. You received jointly
$400 for your step-daughter. You separated and are claiming your
step-daughter. For the Advanced Child Tax Credit you will be claiming $200
and not $400. Your spouse will not need to claim or record the other $200
on their tax return. You will input $200 for the Advanced Child Tax Credit
input line. The Child Tax Credit is based upon the individual child
dependent and the recipients of the credit only claim the amount which they
actually have received. On the flip side if you did not claim the
dependent on your personal income tax return for tax year 2008 and claim a
dependent this year you will get the full $400 Advanced Child Tax Credit
amount subject to eligibility and personal tax liability. In this case
your input in the Advanced Child Tax Credit line will be zero or blank.
|
|