It’s my annual “Taxes from A to Z” series! Next up: N is for nonrefundable tax credits A credit is a dollar for dollar reduction in the amount of tax you owe. There are two types of tax credits: A refundable tax credit can reduce your tax liability below zero. If the amount of the…
Here’s what you should know about the form 1098-T, Tuition Statement.
(UPDATE: The giveaway is now closed. We have our winners! See the comments for more info.) Education tax credits can help you pay for the costs of higher education. Credits are great because they are dollar for dollar reductions in your taxes due as opposed to deductions which merely reduce your income subject to tax….
The delay in processing forms 8863, Education Credits, at the IRS is causing more trouble than just slowing down refunds. The delay, which was formally addressed this week by the Department of Education, is the result of “a technical error with a limited number of tax filing software products” and has affected hundreds of thousands…
(Note: Updated to reflect Department of Education comments.) As anger continues to grow over delays with processing the federal form 8863, Education Credits, I reached out to the Internal Revenue Service, H&R Block, and the Department of Education to answer your questions. IRS spokesperson Michelle Eldridge offered the following statement about the delays: The IRS…
Tax season is proving to be a major headache for taxpayers this season. And it looks like it’s not about to get better for hundreds of thousands of taxpayers who claimed the American Opportunity Credit or the Lifetime Learning Credit on their personal income tax returns. To claim the credit, taxpayers must file a federal…
When the Internal Revenue Service finally announced that it was accepting federal form 8863, Education Credits (American Opportunity and Lifetime Learning Credits (downloads as a pdf), taxpayers heaved a sigh of relief. With a delayed tax season already in play, the additional two weeks pushed filing dates out more than three weeks for up to…
With just a few days left before tax season officially opens on January 30, the Internal Revenue Service has announced that there will be a slight delay in processing individual tax returns claiming education credits. Those returns will begin to be processed by the middle of February. Specifically, those taxpayers who are affected are those…
