College Tuition Credits (Federal and NYS)

Keep this point in mind. It's important.

I can't speak for TaxCut, but it sounds probable because of the various Federal phaseouts.

Yes. Personal exemptions are phased out above AGI just under $113,000. Click on line 42 of the 1040 and you should be able to open the worksheet where this calculation is done. Personal exemptions also don't count in AMT. The best way to decide is to total up the tax on all four returns two ways: one with you claiming his exemption and one with no one claiming his exemption. Then figure out which way gives the least total tax for the two of you.

-- Phil Marti Clarksburg, MD

The NYS College Tuition Credit (Form IT-272) is a refundable credit.

-- Don EA in Upstate NY

Except that If the child did not pay half his own support then even he can not claim his own exemption. With the income level of the parents I will be willing to bet anyone that the child fails his own support test. Therefore the educational credits MUST stay with the parents. Regards,

Mark Rigotti

True.

False. If the parents don't claim a dependency exemption (because their income is high enough that their personal exemptions are entirely phased out, for instance), the child cannot claim an exemption for himself, but may claim the education credits. Phoebe :)