Lifetime Learning Credit, What you Need to Know

by Fresh Start Tax | Jun 2, 2014 | Tax Help

IRS, Tax Return Info Education Credits
Question: What is a lifetime learning credit?

Answer: The lifetime learning credit is a nonrefundable tax credit with a per family dollar limit that is available for qualified tuition and related expenses of higher education, whether the student is at the undergraduate or graduate level.

The lifetime learning credit is calculated by taking 20% of the first $10,000 of the qualified educational expenses paid for all eligible students.

American Opportunity Credit, Hope Scholarship Credit – Who Qualifies, Read Here

by Fresh Start Tax | Jun 2, 2014 | Tax Help

Question: Who can claim the American opportunity credit, the expansion of the Hope Scholarship credit?

Answer: The American opportunity credit modifies the Hope Scholarship credit for any tax years beginning in 2009 through 2017.

The maximum amount of the credit is $2,500.00 and 40% of the Hope credit is refundable (up to $1,000).

You may claim the Hope Scholarship credit if all of the following requirements are met:

• You pay qualified tuition and related expenses (see the definition below) for the first 4 years of post secondary education.

• The qualified tuition and related expenses are for an eligible student (see the definition below).

• You must state the name and taxpayer identification number of an eligible student on the return.

• You must also state the name and address of the qualifying educational institution and in most cases show the federal employer identification number of the institution.

• Your modified adjusted gross income is below a certain dollar limitation.

• You are not listed as a dependent in the exemption section of another person’s tax return (such as your parents’).

• If you are married, your filing status is married filing jointly.

• You do not claim the lifetime learning credit for the same student in the same year.

• If you (or your spouse) are a nonresident alien for any part of the tax year, the nonresident alien elects to be treated as a resident alien for tax purposes. (For additional information, refer to Publication 519, U.S. Tax Guide for Aliens).

In general, qualified tuition and related expenses means tuition, fees, and course materials required for the enrollment or attendance of you, your spouse, or your dependent with respect to whom you are allowed a deduction, at an eligible educational institution.

To be an eligible student, generally, the student must:

• Have been enrolled in a program that leads to a degree, certificate, or other recognized educational credential for at least one academic period beginning in the tax year.

• Carry at least half the normal full-time workload for the course of study.

• Not have made an election to claim the Hope Scholarship credit for any 4 earlier tax years.

• Not have completed the first 4 years of post secondary education before this tax year.

• Must have been free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year.

File Back Tax Returns, IRS Settlements, Offer in Compromise, Former IRS – Pittsburgh, Bethel Park, Johnstown

by Fresh Start Tax | Jun 2, 2014 | Tax Help

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 IRS Tax Settlements are called Offer in Compromise

If you owe tax debt and wish to settle your case with the Internal Revenue Service you will have to file what is known as the offer in compromise.

As a former IRS agent I worked the offer in compromise program and was a teacher or instructor for the program

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Filing back tax returns.

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File Back Tax Returns, IRS Settlements, Offer in Compromise, Former IRS – Pittsburgh, Bethel Park, Johnstown

IRS Taxes Help – IRS Audit, IRS Levy, IRS Settlement, File Back Tax Returns – AFFORDABLE – Pittsburgh, Bethel Park, Johnstown

by Fresh Start Tax | Jun 2, 2014 | Tax Help

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Quick Tax Facts

•  the Internal Revenue Service audits .088% of all tax returns,

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Two Affordable Care Act Electronic Publications

by Fresh Start Tax | Jun 2, 2014 | Tax Help

The IRS  announced the issuance of two electronic publications containing information for individuals and families about the Affordable Care Act (ACA).

These one-page publications are available on the IRS website and can be used by individuals, tax professionals, health care professionals and other stakeholders for educational and outreach purposes.

Publication 5152, Report changes to the Marketplace as they happen…, discusses the importance of reporting changes in circumstances, such as family size and income changes that can affect the Premium Tax Credit, to the health insurance Marketplace. Reporting changes can help individuals and families avoid getting too much or too little in advance credit payments.

Publication 5156, Facts about the Individual Shared Responsibility Provision, discusses what individuals need to know regarding health insurance coverage and taxes.

These two publications will supplement several earlier IRS ACA flyers:

Publication 5120 (English) and Publication 5120SP (Spanish) – Facts about the Premium Tax Credit (Flyer)

Publication 5121 (English) and Publication 5121SP (Spanish) – Facts about the Premium Tax Credit (Tri-fold Brochure)

Publication 5093 –Health Care Law Online Resources