Education Credits in Midwestern Disaster Area

[NECPA in NEBRASKA]

I need some clarification on the room and board that is allowed if the student attends college in the affected areas. I understood the additional deduction to be if they actually incurred room and board expenses while going to school, not if they lived at home. I must be reading it wrong, because I received a statement from a school that showed the amount allowable if you lived with your parents. If this is correct, I'm glad that I haven't finished a whole bunce of these affected returns.

Thanks!

Bonnie

[mcb39]

I need some clarification on the room and board that is allowed if the student attends college in the affected areas. I understood the additional deduction to be if they actually incurred room and board expenses while going to school, not if they lived at home. I must be reading it wrong, because I received a statement from a school that showed the amount allowable if you lived with your parents. If this is correct, I'm glad that I haven't finished a whole bunce of these affected returns.

Thanks!

Bonnie

There is a box to check on the Tuition Credit Worksheet. If they go to school in one of the qualifying counties, you check the box and it automatically increases the Tuition Credit. So far, I have printed maps from four states; WI, MN, IA and MI; which show which counties are qualified. Maps are at www.fema.com

[NECPA in NEBRASKA]

Thanks. I'm OK with how to do the credit and that you can now add books and supplies. I am just unsure about the room and board that is now eligible in this area. I can't believe that you can add room and board if you lived at home and went to school, but one school here in Nebraska sent an amount that they say that you can use if you lived at home and not in their dorms.

[mcb39]

Thanks. I'm OK with how to do the credit and that you can now add books and supplies. I am just unsure about the room and board that is now eligible in this area. I can't believe that you can add room and board if you lived at home and went to school, but one school here in Nebraska sent an amount that they say that you can use if you lived at home and not in their dorms.

If you lived at home in one of the designated counties, I don't think it matters. If the school was in the disaster area, so was the home he lived in....

[NECPA in NEBRASKA]

I did some more research and quite a few colleges have posted online the amounts per semester for on campus, living with parents and living off campus. It just seems strange to me with this lousy economy that they can get extra credit for living at home, because most of the colleges around here didn't have any damage from any of the storms.

[David1980]

It does seem strange. Perhaps even unfair, since they didn't really suffer any loss. So of course it's tax, which makes no sense and isn't fair.

Pub 4492-B has this to say.

3. For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts.

a. The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.

b. The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution.

Appears to me the eligible education institution can determine the amount.

[Jack from Ohio]

Here is a link to all the information about the disaster area.

http://www.irs.gov/pub/irs-pdf/p4492b.pdf