How to Get a Tuition Rebate
- Step 1
- KEEP YOUR EXPENSES. Keep receipts for all tuition, book, and room and board expenses for your kids. The credit is PER STUDENT, so keep separate receipts for each student. (That is, if you have two students in college, you get a credit for each. Cool, huh?)
- Step 2
KNOW THE LIMITATIONS. You must have an adjusted gross income of less than $80K (single) or $160K (joint) to get full credit. More than $90K (single) or $180K (joint), stop reading. You gets none. Your kid can't have a scholarship or a felony drug conviction. (Seems a bit unfair. They don't necessarily disqualify a murder conviction, LOL.)
- Step 3
KNOW HOW TO CLAIM. Assuming you got past Step 2, claim all of the tuition, book, and room and board expenses for each child on Form 8863 up to $2K. Claim 1/4 of the next $2K. File Form 8863 with the IRS in April 2010 and get your hard earned money back.
- Step 4
KNOW THE 529 LOOPHOLES. If you have a profit on your 529, and you withdraw it to pay for college expenses, the IRS won't give you the credit. So pay for things OTHER than tuition, books, and room and board with the 529 profit money, if possible. Then you still get your full credit. If that's impossible, stick the profit 529 money all in room and board and pay for tuition with the principal or something else. Remember, you only get taxed on the PROFIT of the 529. So it still benefits you to claim the deduction. This isn't hard. Just follow these simple instructions to a tee to get your hard earned money back. Good luck!
Published by Chrisdavy
AC's licentious, guilty pleasure. What can I say? I write about sex and money. You know, the important stuff. Giggle. (But I do it so well!) Fashion, too. LOL View profile
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