Tax advice for college students and their parents


Irishcolleen
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I have been taking an income tax course.  There are a few mistakes that are common.  I wanted to share this one because so many people get tripped up by it, according to the IRS.

 

Thousands of filers miss out on all the education tax credits they are eligible for! This is because IRS Form 8863 is poorly worded. Line 23 seems to say (but it doesn't) that if your child has taken the American Opportunity Credit or the Hope Credit in the past four years they are not eligible to take it again. The American Opportunity Credit (AOC) can be taken for 4 years as long as the student is an undergrad. The form says "any 4 years" not "any of the 4 years". Understanding this can save you hundreds of dollars.

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