Education

Hello,

I am a full time Psychology student, with a 4.0 gpa. I completed the FAFSA (the federal grant/loan/scholership Federal Aide for Student Admissions). So, to answer your question, yes you can definately get an education tax credit. The amount will vary based on your contribution, income and the amount that you are required to pay out of your pocket. You can go to turbo tax.com for a free trial and do your taxes, follow the prompts, it is that easy. You will then get an idea of what you can expect in a return or credit. Keep in mind however, in claiming your child on your taxes your childs grants, loans and financial resourse will be affected based on how much income you and he/she have, instead of just him/her. You might want to think about doing your taxes 2 ways to see what the best return will be, financially. Do 1 example taxes (do not file w/the IRS, just use your findings to develope a more financially sound result) claiming you child on your taxes and see what the results are. Then, do taxes w/o claiming him/her on your taxes, instead the child doing his/her own taxes based on their income alone, and what that may add up to in grants and assistance. Then compare the 2, see which one works out best for your situation. I am not advocating misrepresentation to the IRS, I am however advocating a solid financial plan to help you and your child get the most from the college experience and save yourself a little in the process. I hope this helps, if you have any other questions, feel free to post it to me. I went through the processes of taxes and college assistance, so I have some personal experience to add to your situation.

Lisa "Chaos" Morrison