Wednesday, August 26th, 2009

help with hope credit and tuition and fees deductions on taxes?

credit help
nicole m asked:


i dont understand if im able to deduct these on my taxes. my income is below max levels but i received scholarships and student loans?

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3 Responses to “help with hope credit and tuition and fees deductions on taxes?”

v b Says:
August 26th, 2009 at 6:38 am

1st, are you a dependent of someone else? if yes, these go on their tax return.

2nd, scholarships used to pay tuition use up the tuition dollars. If the entire tuition is covered, nothing is left for the tuition deduction/hope credit. (In fact, if your scholarship is larger than your tuition, it’s taxable.)

3rd. student loans are not income, because you have to pay them back. They do count as support you provided yourself and if you use them to pay tuition, can be used for the tax breaks.

See IRS publication 970.

ninasgramma Says:
August 29th, 2009 at 9:00 am

Scholarships which are used for tuition and fees are not income. This money does not appear on your tax return.

If you paid for some of your tuition and fees with loans or out of pocket, this amount may be used for the education credits or tuition and fees deduction.

These benefits will be taken by you or by the taxpayer who claims you as a dependent.

Judy Says:
August 30th, 2009 at 5:11 pm

If you don’t pay any tax, then you don’t get the credit. It can only reduce your tax, so if you have none to reduce, you don’t get any benefit.

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