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EDUCATION DEDUCTIONS WILL HAVE TO WAIT

  • By Lauri Paxton
  • 11 Feb, 2013
The  American Opportunity Tax Credit   is a refundable tax credit for undergraduate college education expenses and due to tax changes will have to wait until mid- February to file. This credit provides up to $2,500 in tax credits on the first $4,000 of qualifying educational expenses. The credit can be claimed by individuals or their dependents if the student is enrolled part or full time in post-secondary education.  This credit is available for the first four years of post-secondary education.
In addition to tuition, under the American Opportunity credit, other course materials such as books, lab supplies, software and other class materials can qualify for the tax credit and can be filed under form 8863.
According to Kiplinger Tax Letter, “Filers claiming education credits will have to wait until mid-Feb. to file”, the Revenue Service says. The agency needs more time to reprogram its computers to reflect late changes made by Congress. This affects taxpayers who file Form 8863 to take the American Opportunity tax credit or the Lifetime Learning credit. People who claim the deductions for student loan interest or college tuition are not affected.
What this means for many taxpayers is that they will need to wait a bit longer until the IRS can update the 8863 Form.
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