2016 Tax Olympics: Proving Education Tax Credit Eligibility (Day 10)

6:35 AM Jamaal Solomon 0 Comments Category :

2016 Tax Olympics: 
Proving Education Tax Credit Credit Eligibility (Day 10)

I LOVED my college experience.I had too much fun and even met my wife in college! I wish everyone could have an opportunity to experience the college life. However, college is expensive as hell. Every penny counts when trying to afford college. It is highly recommended to see if you are eligible to qualify for education tax credits. I wish I can tell you that figuring out your eligibility is simple but that is not the case. Good news, I'm about to discuss some short cuts to figuring out your eligibility....YOU'RE WELCOME!!!!


Expenses that qualify for an education credit (whether the American Opportunity Tax Credit or the Lifetime Learning Credit) are qualified tuition and related expenses paid by the taxpayer during the taxable year. Qualified tuition and related expenses are tuition and fees required for the enrollment or attendance of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer at an eligible educational institution for courses of instruction.

An eligible educational institution means a college, university, vocational school, or other postsecondary educational institution that is accredited and eligible to participate in the federal financial student aid programs administered by the Department of Education.

Qualified tuition and related expenses do not include the following types of expenses:

  1. Expenses related to any course of instruction or education involving sports, games or hobbies, or to any noncredit course (unless the course or other education is part of the student's degree program or, in the case of the Lifetime Learning Credit, the student takes the course to acquire or improve job skills),
  2. Student activity fees (unless required for enrollment or attendance),
  3. Athletic fees (unless required for enrollment or attendance),
  4. Costs of room and board,
  5. Insurance premiums or medical expenses (including student health fees),
  6. Transportation expenses, and
  7. Other personal, living, or family expenses.


If you receive a letter or are audited by the IRS, it may be because the IRS did not receive a  Form 1098-T, Tuition Statement, verifying the student’s enrollment.  Or, the IRS need additional information to support the amounts of qualified expenses you reported on the tax return. Review your  Form 1098-T to make sure the student’s name and social security number are correct. If they do not match, contact the school to correct the information for future 1098-T reporting. If the student should have and did not receive the  Form 1098-T, contact the school for a copy. Note:

If you claimed expenses that were not reported on the  Form 1098-T in Box 1 as amounts paid or if your school reported the amount you were charged for qualified expenses in Box 2, send the IRS copies of paid receipts, cancelled checks or other documents as proof. See your letter for further instructions for what documents to send.


Check out "Am I Eligible to Claim an Education Credit?" page.This online interview will help you determine if you are eligible for certain educational credits or deductions including the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition and Fees Deduction. The tool is designed for use by taxpayers that were U.S. citizens or resident aliens for the entire tax year for which they are inquiring about. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. 
This tool shouldn't take you more than 10 minutes to complete.
Here is the link to IRS website regarding Education Credits: Education Credits

Stay tuned for Day 11 event: Networking As An Young Tax Accountant

Name: Jamaal Solomon