Tax Credit

Understanding the Lifetime Learning Credit

The Lifetime Learning Credit is an educational tax credit that can help alleviate the cost of education in the United States. Discusses the various test that you need to pass before you can claim this credit, what expenses qualify, what expenses do not qualify, who is eligible, and how to calculate the credit.

Audit Finds the IRS Inability to Track the Home Buyer’s Credit

For a change, the IRS are the ones who got audited. A recent article in the Los Angeles Times stated that  an audit raises questions about the IRS ability to track home buyers credit. The auditor found that the IRS lacks a system to keep track or to monitor on the individuals who claimed the […]

Understanding the American Opportunity Credit

The American Opportunity credit is a new educational credit in order to help alleviate the cost of education in the United States. Discusses the various test that you need to pass before you can claim this credit, what expenses qualify, what expenses do not qualify, who is eligible, and how to calculate the credit.

Hope Credit: Who can still use this educational tax credit?

With the introduction of the American Opportunity Credit, the Hope credit faded away since it offers less benefit. However, the Hope Credit yields a higher benefit if you are part of this group. The article also discusses the test that you need to meet to qualify, what expenses you can deduct, what you can’t deduct and how to calculate the credit.

Understanding Tax Credits – List of Common Tax Credits

A guide to understanding how tax credit works, how it is different from a tax deduction, and the various types of tax credit.