Can a custodial parent claim the Child Tax Credit if the noncustodial parent claims the child as a dependent due to the divorce agreement?
The custodial parent cannot claim the Child Tax Credit for a child in the tax year that the noncustodial parent takes the exemption for that child. Please refer to the 1040 Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for this credit and how to calculate it.
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Does the Form 8332 (used to release the exemption to the noncustodial parent) affect the Child Tax Credit?
Yes. The Child Tax Credit can only be claimed by the parent claiming the exemption. In this case the noncustodial parent would qualify for the dependency exemption and therefore the child tax credit. Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for this credit, and how to calculate it.
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Can you file for the Child Tax Credit and the Child Care Credit, too?
The Child Tax Credit and the Child and Dependent Care Credit can both be claimed on the same return. They can be claimed on either Form 1040, U.S. Individual Income Tax Return, or Form 1040A, U.S. Individual Income Tax Return. Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for Child Tax Credit, and how to calculate it. Publication 503, Child and Dependent Care Expenses, has more information for the child care credit.
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If I file using filing status married filing separately, can I still claim the Additional Child Credit?
Yes. You will need to complete Form 8812, Additional Child Tax Credit, and attach it to your Form 1040 or 1040A. Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for Child Tax Credit, and how to calculate it.
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Is a grandchild, who is a dependent, eligible for the Child Tax Credit?
Your grandchild under the age of 17 who is your dependent and is a U.S. Citizen or Resident Alien is a qualifying child for the child tax credit. Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for Child Tax Credit, and how to calculate it.
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Can I get the Child Tax Credit for a child with an ITIN, not a social security number?
Yes, with an individual tax identification number (ITIN), you can claim the Child Tax Credit if you otherwise qualify. The Child Tax Credit can only be claimed by the parent claiming the child as a dependent.
Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for Child Tax Credit, and how to calculate it.
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My child lived for only 12 days and I never received a social security number, because the Social Security Administration will not issue a social security number for a deceased child. Can I still qualify for the Child Tax Credit?
Yes, you may attach a copy of the child's birth certificate and enter "DIED" in column 2 of line 6c. You will also need to put a check mark in column 4 of line 6c. Please refer to the 1040 Instruction Booklet or the 1040A Instruction Booklet index for Child Tax Credit. The referenced pages will explain who qualifies for Child Tax Credit, and how to calculate it.
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What is a Lifetime Learning Credit?
A nonrefundable tax credit up to $1,000 per family for all undergraduate and graduate level education.
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Who is eligible for the Lifetime Learning Credit?
An eligible student can be you, your spouse, or an eligible dependent. In any one tax year, only one person can claim a higher education credit for a student's expenses.
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I'm a full-time graduate student and am required pay a comprehensive fee as part of my enrollment. This fee includes student center fees, health fees, bus fees, and athletic fees. Does this comprehensive fee qualify for the Lifetime Learning Credit?
If a student is required to pay a comprehensive fee to an eligible educational institution that includes charges for tuition, fees, and personal expenses, the portion of the comprehensive fee allocable to personal expenses is not eligible for the credit. The allocation must be made by the institution using a reasonable method.
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Is the Lifetime Learning Credit used only to reduce the tax people owe or may it give me a refund even if I do not owe any tax?
Both the Hope Credit and the Lifetime Learning Credit are nonrefundable credits. In other words. they only reduce your federal income tax liability; they do not give you a refund if you do not owe any tax.
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Can the Life Time Learning Credit be used for a high school student taking classes at an approved college prior to graduation from high school?
College courses taken while attending high school may qualify for the Hope Scholarship Credit or for the Lifetime Learning Credit if the student meets the qualifications for claiming either of the credits.
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What information on this Form 1098-T statement from my university do I use to figure my Lifetime Learning Credit?
If you claim an education credit, keep Form 1098-T with your tax records. The information on the form will not be used to figure the amount of your credit. The Form 8863, Education Credits (Hope and Lifetime Learning Credits), is used to calculate your credit.
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Can nonresident aliens claim the Lifetime Learning Credit for tuition paid to go to school?
If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. However, if you are married and choose to file a joint return with a U.S. citizen or resident spouse, you may be eligible for the Hope or Lifetime Learning Credit.
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I did not attend school this year, but made loan payments for college tuition. Does money paid for student loans apply to the Lifetime Learning Credit?
No, payments on your student loans do not qualify for the Lifetime Learning Credit. However, the interest on the student loans may be deductible for Federal income tax purposes if you met certain qualifications. For more information, refer to Publication 970, Tax Benefits for Higher Education.
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I am a student who is claimed as a dependent on my parent's tax return. I pay my college tuition out of my own earnings. Can I take the Lifetime Learning Credit on my tax return?
No, if your parents claim you as a dependent, you cannot claim either of the education credits. However, any qualifying tuition payments that you made can be claimed by your parents as paid by themselves and may qualify them for the Hope or Lifetime Learning Credit.
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Am I eligible to claim both my job education expenses (minus 2% of AGI) and the Lifetime Learning Credit on my taxes?
You can not deduct educational expenses and claim a credit for those same expenses. You must choose one or the other.
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If my employer reimbursed my education expenses and included the reimbursement in my taxable income, is the amount still eligible for the Lifetime Learning Credit?
The amount included as taxable income is eligible for the Lifetime Learning Credit. If your tuition is paid by your employer and not included in your taxable income, then that amount is ineligible for the education credits due to the provision that no double benefits are allowed.
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I am trying to understand what is a qualified expense under the Lifetime Learning Credit. The guidelines states books are included in qualified expenses only if the fee must be paid to the institution as a condition of enrollment. I am required to have books for classes that I am taking, and I purchased the books from the college bookstore. Can I add the cost of these books to my qualified expenses?
The Federal Tax Regulations provides an example that answers this question: First-year students at College W are required to obtain books and other reading materials used in its mandatory first-year curriculum. The books and other reading materials are not required to be purchased from College W and may be borrowed from other students or purchased from off-campus bookstores, as well as from College W's bookstore. College W bills students for any books and materials purchased from College W's bookstore. The fee that College W charges for the first-year books and materials purchased at its bookstore is not a qualified tuition and related expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution.
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