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Thread: Filing Taxes: What's up with Form 8863 (Education credits)?

  1. #1
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    Filing Taxes: What's up with Form 8863 (Education credits)?

    So, I'm trying to file my taxes, as I typically get a nice little return that I could really use ASAP. I'm ready to go, and I notice I'm not getting my education credits. I'm e-filing, and I'm getting a message that says the IRS isn't taking Form 8863 as an efile. :mad: :mad:

    Anyone else having this problem? I'm also getting a message that says the IRS may take its own sweet time if this form is even involved.

    Help!
    --Mary Kate--

    "In all our woods there is not a tree so hard to kill as the buckeye. The deepest girdling does not deaden it, and even after it is cut down and worked up into the side of a cabin it will send out young branches, denoting to all the world that Buckeyes are not easily conquered, and could with difficulty be destroyed." - Daniel Drake, 1833

  2. #2
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    Eh, replying to myself after a few phone calls and a bit of research. Here's the deal: it was supposed to be ready by Feb. 1, but it's not. :mad: Late tax-law changes in Congress delayed the forms.

    http://www.irs.gov/newsroom/article/...153344,00.html

    I'm confused how a only a few hundred-thousand people would be filing the Education credits form. Aren't there a lot more people than that in higher education? Lifetime Learning and Hope credits? So very annoyed ...
    --Mary Kate--

    "In all our woods there is not a tree so hard to kill as the buckeye. The deepest girdling does not deaden it, and even after it is cut down and worked up into the side of a cabin it will send out young branches, denoting to all the world that Buckeyes are not easily conquered, and could with difficulty be destroyed." - Daniel Drake, 1833

  3. #3
    Lots of people aren't eligible to take the education credit - they make too much money. Like us for example. We're paying tuition for three students, but since we're "rich" we don't get the credit. :mad:

    So, that might explain why it isn't widely available. Too wierd that the paperwork isn't ready yet. How inefficient.

    Debie
    Never take life seriously. Nobody gets out alive anyway.

  4. #4
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    Is this in reference to the interest paid toward student loans or is this for actual tuition paid? I am well out of school, but I have been getting forms in the mail from all of our student loan providers saying how much we have paid this year in interest. I've gotten them in the past and always passed them on to our accountant but then never really paid attention to whether he did anything with them. But this year, man, we've paid a TON in interest and it would be great if we can deduct all of it. If there is an income cap, that might knock us out this year. Debbie - do you know the income cut-off for eligibility?

  5. #5
    From the IRS site:

    Hope credit: Income limits increased. The amount of your Hope credit for 2005 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $43,000 and $53,000 ($87,000 and $107,000 if you file a joint return). You cannot claim a credit if your MAGI is $53,000 or more ($107,000 or more if you file a joint return). This is an increase from the 2004 limits of $42,000 and $52,000 ($85,000 and $105,000 if filing a joint return). See Effect of the Amount of Your Income on the Amount of Your Credit, later, for more information.

    Lifetime Learning: Income limits increased. The amount of your lifetime learning credit for 2005 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $43,000 and $53,000 ($87,000 and $107,000 if you file a joint return). You cannot claim a credit if your MAGI is $53,000 or more ($107,000 or more if you file a joint return). This is an increase from the 2004 limits of $42,000 and $52,000 ($85,000 and $105,000 if filing a joint return). See Effect of the Amount of Your Income on the Amount of Your Credit, later, for more information.


    Both have had their income limits increased, so if you weren't eligible before you might now.
    Never take life seriously. Nobody gets out alive anyway.

  6. #6
    The limits are different for student loan interest. It's a deduction rather than a credit. One nice thing that's changed in the past few years is you can deduct interest for the life of the loan rather than only the first 5 years of repayment.

    From the IRS site:

    The maximum deductible interest on a qualified student loan is $2,500 per return. If you are a taxpayer whose return status is married filing jointly, you are allowed to deduct the full $2,500 only when your Modified Adjusted Gross Income (MAGI) is $100,000 or less. If your MAGI is between $100,000 and $130,000, the amount of your student loan interest deduction is gradually reduced. The instructions for Form 1040 (PDF) show you how to compute the deduction. If your MAGI is $130,000 or more, you are not able to take any deduction.

  7. #7
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    Quote Originally Posted by gertdog
    The limits are different for student loan interest. It's a deduction rather than a credit. One nice thing that's changed in the past few years is you can deduct interest for the life of the loan rather than only the first 5 years of repayment.

    From the IRS site:

    The maximum deductible interest on a qualified student loan is $2,500 per return. If you are a taxpayer whose return status is married filing jointly, you are allowed to deduct the full $2,500 only when your Modified Adjusted Gross Income (MAGI) is $100,000 or less. If your MAGI is between $100,000 and $130,000, the amount of your student loan interest deduction is gradually reduced. The instructions for Form 1040 (PDF) show you how to compute the deduction. If your MAGI is $130,000 or more, you are not able to take any deduction.
    Thanks, Stephanie (and Debbie) for posting the info. The student loan interest info that Stephanie posted is what I was wondering about. We paid SO MUCH more than $2,500 in interest this year but it looks like we can't take the stupid deduction anyway.

  8. #8
    *snort* are you rich too, Laura???
    Never take life seriously. Nobody gets out alive anyway.

  9. #9
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    Quote Originally Posted by Chefzhat
    *snort* are you rich too, Laura???
    Yes, apparently according to the government I am. Why don't they consider where you live when they make these rules? I am not rich by Manhattan standards AT ALL!

  10. #10
    Quote Originally Posted by Laura B
    Yes, apparently according to the government I am. Why don't they consider where you live when they make these rules? I am not rich by Manhattan standards AT ALL!
    'cause then they'd have to think.
    Never take life seriously. Nobody gets out alive anyway.

  11. #11
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    It's the gift of the MAGI! *rimshot*
    "Is ice hockey hard? I don't know, you tell me. We need to have the strength and power of a football player, the stamina of a marathon runner and the concentration of a brain surgeon. But, we need to put all this together while moving at high speeds on a cold and slippery surface while 5 other guys use clubs to try and kill us. Oh, yeah, did I mention that this whole time we're standing on blades 1/8 of an inch thick. Is ice hockey hard? I don't know, you tell me. Next question."

  12. #12
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    Quote Originally Posted by badunnin
    It's the gift of the MAGI! *rimshot*

    LOL! I haven't heard that one before.
    "Broken cookies don't have calories" - Unknown

  13. #13
    Quote Originally Posted by Laura B
    Yes, apparently according to the government I am. Why don't they consider where you live when they make these rules? I am not rich by Manhattan standards AT ALL!
    Hey, it's your choice to live there though, right?
    Jennifer


    And in the end it's not the years in your life that count. It's the life in your years.
    --Abraham Lincoln

    Write it on your heart that everyday is the best day of the year.
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