Education Credits

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- dman81
  
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posted
16 years ago

Sun, Jan 27, 2008 8:26 PM

Hi,

I do my taxes using TurboTax and I recently found out that you can claim credit on borrowed money used to pay for your education. Can you guys tell me how I can claim this lost credit for this year? The missed credit was for 2006. Can it be rolled over or is it lost? Also can one just claim the maximum amount and save the rest for future years? I would be claiming the Lifetime Learning Credit. Please advise and thank you so much!

Dan

========================================= MODERATOR'S COMMENT: If you meet the rules for claiming the LLC (See IRS Publication

970) you can amend your 2006 tax return by filing forms 1040X and 8863. If you paid the tuition, even if from a loan you must repay, in 2006, the tax credit must be filed for tax year 2006.

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- Paul Thomas
  
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Vote on answer
posted
16 years ago

Sun, Jan 27, 2008 9:17 PM

"dman81" wrote

You'll have to prepare and file an amended 2006 return to take the 2006 cresit. Use Form 1040X for that purpose. The 2006 software might do that for you, or you'll have to go online and download a paper form - either way you have to mail it in.

No "saving" in this area. Use what you can, the rest is lost for tax purposes.

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- Condor
  
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posted
16 years ago

Sun, Jan 27, 2008 9:18 PM

The credit is claimed on Form 8863. Due to tax law changes enacted in late December, 2007 returns that include Form 8863 cannot be e-filed until February 11. Nor will processing begin for paper-filed returns with Form

8863 attached until February 11.

To claim the credit for 2006 you will need to file an amended return on Form

1040X with the 2006 version of Form 8863 attached. The processing delay mentioned above does not affect amended returns. Here are links to Form 1040X and to the 2006 Form 8863.

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No. The credit is allowable only for the year the expenses were incurred. Unused education credits cannot be carried back or forward to other tax years.

Condor