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  2. form 8863

    I am talking about adding back the scholarship or pell grant income, which exceeds the tuition amount at least as it is reported on the 1098-T, so that the AOTC can be claimed. Your OP discusses parents taking the AOTC.
  3. Today
  4. form 8863

    I've posted this before but for any new comers this is a good reference to use. https://www.treasury.gov/resource-center/tax-policy/Documents/Report-Pell-AOTC-Interaction-2014.pdf
  5. Tax Star of the Week for 2/16 - 2/23/18

    I want to get a picture of Rita on her backhoe...
  6. Tax Star of the Week for 2/16 - 2/23/18

    IT's a Trap! Don't do IT!
  7. form 8863

    I'm wondering, too. If the numbers on the 1098-T pan out (they probably will not, in my experience), and the excess is $8603, there would be no credit.
  8. form 8863

    Just had one of these situations. Had to go back to the prior year and current year disbursement records. Stanford still reports the 1098T on the school year quarterly system, but the disbursement records are very clear. Agree with this. The excess scholarship goes to the child. Any tax credits go to the return where the dependent resides. Tom Modesto, CA
  9. afraid to get EA

    Holy cow, the cost to take the exam just went up to $181 for each of the three sections? That's a major difference from when I took it 13-14 years ago (or at least it seems). The EA license was easily the cheapest license I'd ever seen a person could acquire back then.
  10. form 8863

    First check the actual financial transcripts from the college to see what was actually paid when and when the scholarship was applied. In many cases the timing of the scholarships and tuition do not coincide with the 1098-T. If the records show that, in fact, the scholarship exceeds qualified tuition, then it is reported on the Child's return. It goes on line 7. The standard deduction will take care of most of it. For $8,000+ there will be some taxable. at 10% tax- not bad for "free money"
  11. form 8863

    No, I'm not adding the excess (8,603) income back into the parents income because the scholarship is never treated as income to the parents.
  12. form 8863

    The excess scholarship is shown as income on the child's tax return.
  13. afraid to get EA

    I don't have anything to offer, but I wanted to say 'Good Luck'. You've got this!
  14. PTC (repayment)

    I hate when that happens. Thanks
  15. form 8863

    Are you adding the scholarship income back in to the parents' income so you can claim the AOTC? I'm not sure I'm following your post.
  16. Lynn from Louisiana - Education Credits (??)

    Cathy, remember in prior years LDR (on behalf of the state legislature) offered both an education CREDIT and a school/tuition DEDUCTION. Up until (I think) the 2016 tax year taxpayers could take BOTH, if they had qualifying children and expenses. For 2016 the legislature changed the rules so that taxpayers could take the measly $18 (reduced from the prior $25) credit OR the (up to) $5,000 school/tuition deduction. New for 2017 the legislature has removed the measly $18 credit and left taxpayers only the option of the (up to) $5,000 school/tuition deduction. Does this help? Lynn
  17. form 8863

    Daughter is in her 2nd year of college with income of only $160.00. She received a scholarship of $55,000 and her education cost box 2 is $46,397. Her parents is claiming her as a dependent and claiming the AOTC. The parents AGI is 73,173. What do we do with the excess of 8,603. Parents stated that daughter used it for room and board off campus. So is the excess taxable to parent or child.
  18. Fun with MA nonresident return

    Just did a MA nonresident for my RI client who worked part time in MA. Couldn't get the interest, dividends and capital gains to not show as MA income, so I just used a blank line on B & D to type nonresident and backed them both out. I know that can't be right but I couldn't spend anymore time on it. Also got a warning about possibly having to adjust the Social Security and Medicare deductions because total income exceeds MA wages, but I decided to just let MA adjust that if they like. Told the client that MA might adjust her refund. Any insights from you MA preparers would be appreciated. Laugh if you must.
  19. PTC (repayment)

    It is a full year calculation. This is one of the pitfalls (critical oversights/flaws/stupid law crap) of the ACA. You have to estimate your future income, and the penalty for not knowing the future at the time you sign up can be financially devastating to the taxpayer. I am not being critical of the politics, just the actual law as it is written. It is unfair to the TP to make their estimate of income the determining factor in the amount of a tax credit that will need to be repaid if the estimate is incorrect. Getting off my soapbox now. Tom Modesto, CA
  20. afraid to get EA

    Are you the famous person from Gliem?
  21. PTC (repayment)

    Before I make the dreaded call to the TP, if one had a very low income during half of the year and qualified you for PTC, TP gets a well paying job that provides health insurance, PTC stops, yearly income is kind of high, is this a cause for PTC phaseout? Or would the TP still qualify for half of the year only at the lower income and there is something I need to click on ATX to calculate for half of the year? Thanks
  22. afraid to get EA

    I am a moderator on that page. I can let anyone in that wants to join.
  23. afraid to get EA

    JB or anyone else that would like to take the exam and if you are on Facebook, look up a person by the name of Don Overstreet, this chap has a FB page for EA candidates.
  24. afraid to get EA

    Testing for this cycle ends Feb. 28. The new testing cycle begins May 1. Most people in our group allow 4 - 6 weeks for SEE1, 6 - 8 weeks for SEE2, 4 - 6 weeks for SEE3. This is based on 2 hours a day study time.
  25. Did mine last night. Picking up and e-filing them today. I have to say, I am pretty impressed. The IRS and ATX both got this accomplished pretty darn quick. Unexpected to see both perform at an acceptable level. Tom Modesto, CA
  26. I’ve told my couple of PMI clients early March. If I file before then I’ll be a hero.
  27. State Estimates - can't create efile

    Fixed for Kentucky.
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