If you have
a child beginning college this fall be sure to have him or her save and give to
you the receipts for all textbook purchases.
If purchased online have them print hard copies of the receipts. The American Opportunity Credit, available
for the first 4 calendar years of undergraduate education, allows you to
include the cost of books with tuition and fees in calculating the credit.
You should
also save, again in hard copy, the bills, receipts and “Bursar’s Statements”
that itemize the individual charges for tuition, fees, room and board, and
other items and amounts and sources of payments. You should receive a Form 1098-T from the
school in January of 2020, but these forms do not always provide all the
information you may need.
If you are
paying separately for off-campus lodging for your student while away from home
at college keep track of these payments also.
In addition
to claiming an American Opportunity Credit, or a Lifetime Learning Credit, if
you have used withdrawals from a Section 529 Qualified Tuition Program to pay
for all or some of the college expenses the detailed information of expenses
and payments will be needed.
If your
level of income turns out to be too high to claim a full American Opportunity
Credit your student child may be able to claim a credit on his or her tax
return if they have sufficient income to have to pay tax.
TTFN
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