Created by Congress this new temporary credit to cover the years starting back in 2012.
This is a new version of the Hope Credit for education.
For taxable years beginning in 2012 is an amount equal to 100% of the qualified tuition and related expenses.
This is not in excess of $2,000.00, plus 25% of those expenses in excess of $2,000.00 but not in excess of $4,000.00.
Accordingly the maximum Hope Scholarship Credit allowable is $2,500.
Recently the IRS has stated that university tuition paid by parents on behalf of their high school students who took college classes can qualify as well.
The threshold phaseout amounts and the completed phase-out amounts shown in the table below for married taxpayers filing a joint return include the increase as adjusted for inflation for tax years starting in 2012.
|Number of Children|
|Earned income amount||$9,320||$13,090||$13,090||$6,210|
Surviving Spouse or
Head of Household
|Completed Phaseout Amount Single Surviving Spouse or Head of Household.||$36,920||$41,952||$45,060||$13,980|
|Threshold Phaseout Amount Married Filing Jointly.||$22,300||$22,300||$22,300||$12,980|
|Completed Phaeout amount Married Filing Jointly||$42,130||$47,162||$50,270||$19,190|
Instructions for Form 1040 show the amount of earned income credit for each type of taxpayer.
For the Taxable years starting in 2012, the earned income tax credit is not allowed if the aggregate amount of certain investment income exceeds $3,200.00
A lot of people break out in a nervous sweat and get the shakes when it comes time to file their taxes.
The first time that I tried to file by myself left me with a feeling of confusion because I did not bother to read any information about how to go about it in a fair way, a way that didn't leave me broke and living in a cardboard box in the alley.
I just had at it without reading anything and it was overwhelming. I assure you that after all these years I won't get into a difficult situation like that without any proper info and good forms to file.
Some folks just file as fast as they can to get it over with. They loose out on a bunch of legitimate deductions and allocations that could have saved them a ton of money at tax time.
I would rather be getting a nice tax refund than pay the IRS a lot of money. Pay attention to the details.