Taxes and Education Credit Question

[Hunter's Moon]

I understand that the number in box 2 of the 1098-T is not always how much I have paid. I have a question in regards to loans and box 2, though. I have paid nothing out of pocket for this semester, but I did take out loans. Can I use that on my taxes as something I paid for school this year?

 

I am sorry if I am not being coherent. This is my first time doing taxes, and the education credit is confusing me.

[QueenCat]

Loans count just as if you paid in full, as you are still the one paying. The #2 box tells how much was paid by you, but not from scholarships, grants (things you don't pay back).

[Hunter's Moon]

Loans count just as if you paid in full, as you are still the one paying. The #2 box tells how much was paid by you, but not from scholarships, grants (things you don't pay back).

 

This is what I figured, but when I was doing our taxes (on Tax Act), it says in small print that the amount listed in box 2 may not actually be the amount I put down on the taxes. I went to CC in the Spring of 2012, and when I got the 1098-T from them, box 2 had a number in it, but I went with only grants that semester.

 

Another question, I have a weird schooling schedule at the online college I attend. I started my first term (8 week terms) in the beginning of November and ended that term Dec. 31st. Would the amount in grants and loans only reflect that one term, or the 16 week semester. I take 2 classes every 8 weeks, so 12 credits in 16 weeks like other college students.

[Hunter's Moon]

Does anyone know anything about book store vouchers? I believe that is part of the amount in box 2 from the CC 1098-T. I received a voucher for the bookstore and that is how I purchased my books. Would I include that in my taxes as something out of pocket because the 1098-T has it in box 2, or no?

[Hunter's Moon]

Everything I have found online about student loans and taxes has to do with paying back the student loans and the interest. Since I just took these loans out in the Fall, can I claim those, or do I have to be in repayment?

 

Thanks for any help. I am so confused!

[Lanny]

I suggest to you that you go to the below URL on About.com and that you sign up, so you can participate in their forum(s). William Perez is an I.R.S. Enrolled Agent and he is extremely knowledgeable and helpful. Post your question(s) in his Forum and you will get the correct answers. GL!

http://taxes.about.c...Perez-13909.htm

 

P.S.

I asked 2 or 3 questions, several years ago, and he helped me.

[Crimson Wife]

You deduct the interest paid on your student loans after you start paying them back assuming that you don't income out (income limit is $75k single and $155k married). The loan had to be for qualified educational expenses, including tuition & fees charged by the school, room & board if you live on-campus, and books & equipment.

 

If you are still in school and haven't started paying back your loans yet, you may qualify for the Hope Credit or the Lifetime Learning Credit. The Hope Credit is only available for undergraduate courses and has a higher income limit ($90k single, $180k married). The LLC is available for undergraduate, graduate, or credential but has a lower income limit ($61k single, $122k joint).