[jasoos007]

Hi,

I am on H1B visa and my wife is on H4 VISA. She started working some time ago after we received her employment authorization card.

She finished her masters degree in India and currently taking some course in community college. I understand from your answers on the previous posts that we may be able to take the tax deduction on her tuition fee. However, I am confused over which credit should I apply for Hope or life time learning. Pub 970 says you can only get Hope credit for first tow years of post secondary education. Practically she is just enrolled in community college which is kind of post secondary but in India she has done masters.

Does it even matter if I take life time credit or Hope. Total tuitions we paid this year for her must be closed to $1600.

Another question does Hope credit gets me more refund or life time learning.

Look forward to haring from you all..

Thanks

[MukatA]

In 2007 you can deduct Qualified Education expenses for Tuition and fees required for enrollment or attendance at any eligible postsecondary educational institution for yourself, your spouse or your dependent for whom you claim an exemption. The maximum benefit allowed is that it can reduce your taxable income by $4,000.
It is shown as adjustment to income on Form 1040, line 34 or 1040A, line 19.
No Double Benefit is allowed for example you can't get Hope or Life time learning credit.
You must meet the required conditions.

[AtlantaTaxExpert]

Depending on your income level, you can claim either the deduction or the Lieftime Learning Credit, ut not both.

Sorry, she has a master's degree, so, by definition, she CANNOT claim the Hope Credit.

[jasoos007]

Depending on your income level, you can claim either the deduction or the Lieftime Learning Credit, ut not both.

Sorry, she has a master's degree, so, by definition, she CANNOT claim the Hope Credit.

AtlantaTaxExpert and Mukta,

Thanks for the info.

I agree she has a masters degree and in principle she cannon get the HOPE credit but since the masters degree was done in India... here she is not doing a graduate degree she is kind of enrolled in an associate degree.. you think she still can't take the hope credit.

Another question on numbers.. if my MAGI is 55K and we spend 1500 on tution... can I deduct whole 1500?


Thanks for all your help... you guys are great...

[AtlantaTaxExpert]

Yes, you can deduct the full $1,500, but the Lifetime Learning Credit is probably better.

[jasoos007]

Thanks AtlantaTaxExpert,

Good to know that I can deduct the whole 1500, what document do I need to claim this. Also, I spent like 1000 dollars on books for her... is there anything I can claim for that

Thanks
Nitesh

[AtlantaTaxExpert]

Nitesh:

The school should provide a Form 1098-T to document what you paid and what you got on scholarship. That is the document the IRS uses to verify your tuition expenses.

[jasoos007]

Thanks ATExpert,

The school is tellling us that they did not generate a 1098T form of rmy wife since they think she was exempt.. I don't know why they think so.. probably because she is on H4 Visa but we are classified as resident alien for tax purpose. What do you think should I tell school?

Can I force them somehow to give me a 1098T

Thanks for all your help

[AtlantaTaxExpert]

No, but the Form 1098-T is NOT required if you can show that you paid tuition to the university for your wife's education.