Taxes and your OD school

[ddown]

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For the past several years I have always used the Lifetime Learning Credit to get a big chunk of my taxes back each year and was very surprised when I got my last 1098-T form from Pacificu U. stating that I had paid no tuition in 2007. How can that be since my last Spring semester took place in 2007?

The really bad part is that I cannot claim a Lifetime Learning Credit because I apparently had no tuition expenses. I quick call to Pacific revealed that for some stupid reason they actually bill for the Spring semester in Nov or Dec of the year before.

I respectfully stated that the tax credit is far more beneficial at the back-end of the four years (when you actually make some money), then at the front-end which is the way they have it set up.

Any other recent grads have this experience and now end up owing taxes instead of getting a refund?

 

[drbizzaro]

For the past several years I have always used the Lifetime Learning Credit to get a big chunk of my taxes back each year and was very surprised when I got my last 1098-T form from Pacificu U. stating that I had paid no tuition in 2007. How can that be since my last Spring semester took place in 2007?

The really bad part is that I cannot claim a Lifetime Learning Credit because I apparently had no tuition expenses. I quick call to Pacific revealed that for some stupid reason they actually bill for the Spring semester in Nov or Dec of the year before.

I respectfully stated that the tax credit is far more beneficial at the back-end of the four years (when you actually make some money), then at the front-end which is the way they have it set up.

Any other recent grads have this experience and now end up owing taxes instead of getting a refund?

because of this statement:
Taxpayers with modified adjusted gross income over $50,000 ($100,000 for married taxpayers filing jointly) may not claim a Lifetime Learning Credit.

I was not able to claim, as both my net and gross income was over 119K

 

[ddown]

Yeah, I'm aware of that, but as a resident my wife and I are under the limit and could have used it. I just wish Pacific could change its billing procedure to benefit the graduates who do fall under the income limits.

 

[KHE]

Yeah, I'm aware of that, but as a resident my wife and I are under the limit and could have used it. I just wish Pacific could change its billing procedure to benefit the graduates who do fall under the income limits.

Claim it anyways....you're only going to have to prove it if you get audited and if you do, you can always say that you paid for your tuition in fiscal year 2007, which you did.

 

[cpw]

Claim it anyways....you're only going to have to prove it if you get audited and if you do, you can always say that you paid for your tuition in fiscal year 2007, which you did.

This is true. As long as you have a receipt showing you, in fact, paid the tuition in the year 2007 you can still claim it.

 

[nova2010]

Since I have been in opt school, 2nd yr., I have not filed taxes, since I don't work. Can I still file, even if I don't work, just to get the Life Learning Credit?

 

[cpw]

Since I have been in opt school, 2nd yr., I have not filed taxes, since I don't work. Can I still file, even if I don't work, just to get the Life Learning Credit?

the credit is only to get money back on taxes you've paid while in school. If you're not working, you've paid no taxes... therefore, as far as I know, will not get any money back.

 

[nova2010]

Thanks, CPW.

 

[KHE]

Thanks, CPW.

You may want to check with an accountant because if you have filed before, and then don't for a few years, even if you made no money it is possible that that could cause some administrative headaches for you down the road. Do some research online to see what the rules are about filing with no income if you have filed in the past.

 

[ddown]

Ah, if only I did have a receipt.....

Unfortunately, the money went straight from my lender into Pacific's hands. There is no paper trail showing that I "paid" in 2007.

Just a heads up to the Pacific students out there.