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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Do I have be able to claim my daughter on my tax return in

Resolved Question:

Do I have be able to claim my daughter on my tax return in order to take advantage of the new higher education tax credit?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
HelloCustomer

I assume that you are talking about the Hope Credit or the Lifetime Learning Credit. In order to claim either of those credits, all three of the following requirements must be met:

1) You pay qualified education expenses of higher education.

2) You pay the education expenses for an eligible student.

3) The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.

So the answer to your question is, yes, you must claim your daughter as a dependent in order to take either one of these credits.

If these are not the credits that you are referring to, please let me know which credits you are inquiring about, and I will get back to you with updated information.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you DJ.



Customer: replied 7 years ago.

 

this is in reguards to the new stimulus bill signed into law in February, an $2500. education tax credit if I contribute $4000. for her tuition..

Expert:  Merlo replied 7 years ago.
Hello again dj,

Thank you for the clarification.

Actually the new stimulus bill which you refer to is an enhanced version of the current Hope Credit. Under the previous regulations, the Hope Credit offered a 100% credit for the first $1,200 of qualified expenses and 50% of the next $1,200 in qualified expenses, so that the maximum credit which could be claimed was $1,800.

As part of the recently-signed stimulus bill, an ‘enhanced’ Hope Credit, known as the ‘American Opportunity Tax Credit,’ provides 100% credit for the first $2,000 of qualified expenses and 25% for the next $2,000 qualified expenses such as tuition, fees and required books. That’s $2,500 per student on your 2009 and 2010 federal returns versus only $1,800 per student in 2008.

But the same rules for claiming this credit still apply as I gave you in my original post. So again, you would need to claim your daughter as a dependent on your return in order to qualify for this credit.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you dj, and please let me know if you have additional questions or need clarification on any of these points.


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