In doing my own taxes I am troubled about form 8880.
The instructions say that the deduction is to encourage low and middle
income people to contribute to their retirement accounts. That's me. I
am 42 years old and work full time in a factory but I am also a full
time student at the local university studying accounting. I'm almost
done but for now am a full time student with 12 hours.
The deduction for me amounts to a credit of a little over $500 but it
seems that I am excluded from taking it because I am a full-time
It seems rediculous to me that I would get an additional $500 refund
if I had only 9 hours (part time) instead of 12 hours (full-time)
Can anyone explain this to me or is there no explanation?
On Sat, 03 Feb 2007 11:22:22 -0600, fortsmithken
Like I said before I have been really troubled by this so I looked it
up in the actual IRS code and found the following:
(c) Eligible individual For purposes of this section—
(1) In general The term “eligible individual” means any
individual if such individual has attained the age of 18 as of the
close of the taxable year.
(2) Dependents and full-time students not eligible
The term “eligible individual” shall not include—
(A) any individual with respect to whom a deduction under
section 151 is allowed to another taxpayer for a taxable year
beginning in the calendar year in which such individual’s taxable year
(B) any individual who is a student (as defined in section 152
I think the keyword in the section is AND. I would love it if a CPA
would respond to this to say if I am wrong or right in my
interpretation of the code. I think a person is ineligible if they can
be claimed by another person AND are a fulltime student.
I think if the code had said OR it would be a different story.
Please respond if you have an opinion on this. At this point I am
pretty confident that I can take the deduction. In fact I had a tax
service do my taxes for the last several years and may go back and
file an ammemded return for the last couple years if it would have
made a difference.
Am I wrong in this?
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