@madison85 His parents cannot do the tax credit since they file married filing separately. One of downfalls of filing that way means that certain credits, etc, are not available to you. It makes sense. That credit is “means tested” so when filing separately, the calculation can’t include both parents’ incomes.
Nearly…read post 13. You are transferring to a four year school…right? Is this the first FAFSA you have completed?
Have you always been a California resident…or is that new too?
Your parents have not filed for 2014 yet…if they file jointly for 2014, they could do the AOTC next year.
Yes, @mom2collegekids, @bearly 's parents need to file jointly (if they want to try to claim the AOTC) and this was pointed out in @twoinanddone 's post #14 and my post #15.
Maybe @bearly 's parents can get further assistance from the ‘accountant friend’.
So, @bearly just in case it wasn’t clear, married people who file separately, instead of jointly, cannot claim the AOTC.
I like to suggest that parents who receive the AOTC, depending on the circumstances, allow that money to go back to the student for payment toward next year’s tuition.
thumper, if they file jointly for 2014, they could take the AOTC (if they otherwise qualify) THIS year if they paid at least $4000 in QEE. It sounds like they are not wealthy and would qualify, but as I stated above, sometimes there are good reasons for filing separately, like large medical costs to one lower earning parent or some business losses that need to be set offs to income.
I think most parents plow that AOTC right back into tuition. My daughter’s eyes lit up when she learned there could be a credit, but I quickly explained that she would see it on her tuition bill, not in her pocket. My money, not hers.
Oops. That is what I meant…file jointly for 2014 if they can…And they AOTC would be available to them now. But That is assuming this family is extending funds for college costs now. The OP hasn’t clarified Her current college status here. Other threads indicate she is currently in community college and is transferring to a four year school. But it also,sounds like this is her first FAFSA…so maybe the CC costs are very low.
And Bearly…were you or are you Calgrant eligible?
Well yes, I agree with ‘my money, not hers’ unless the student paid the tuition herself from earnings, loans, reporting scholarships as taxable income.
I have read on CC of one student who lived at home and struggled to pay for tuition, fees, books, food by using earnings and loans, and was dismayed to find out dad was claiming and pocketing AOTC. On dad’s side of the argument, I suppose would be providing shelter.
But that’s how the tax credits are set up. There are a lot of things that aren’t fair about taxes and financial aid and life in general. If the non-custodial parent gets the deduction every year, there is probably a reason for that determined by the court (or agreed to by the parties). My BIL really got screwed in his divorce by his exwife who was an accountant and made sure she got ALL the deductions and credits.
If the IRS wanted the student to get the credit, it would given the credit to the student. It instead gave the credit to the parent. IRS also thinks single parents are less deserving because the max out income is half that of a married couple, even though the cost of college is exactly the same whether the parents are married or not.
@thumper1 yes I am transferring to a four year uni from a CC, and I am a California resident. and @Madison85 and @twoinanddone I’m assuming the AOTC won’t be available this year regardless because CC is cheap right? Well not cheap cheap but at least inexpensive enough not to qualify for AOTC. If that’s the case, then it has to be next year (after I transfer into 4 year uni) is when they can take AOTC, assuming they file jointly?
Also, I’m a guy haha
How much did you pay in calendar year 2014 for CC tuition, fees, books?
Did your CC issue to you Form 1098T in 2013?
Did grants and scholarships pay for your tuition, fees, books at the cc?
@Madison85 like less than $1500 for the year, and actually no (as I said my parents were kinda oblivious as was I) so we didn’t apply for financial aid going into CC (@thumper1 if that answers your question), so we paid full tuition of CC. At the very least, it is CC, and runs to ~$45 a unit. But I assume even if we did pay the tuition price of CC, that’s not enough to qualify for AOTC this year is it?
Have you always been a resident of California? If your parent income is below the threshold, I hope you haven’t lost your Calgrant eligibility.
Look at IRS Form 8863 and Publication 970, and 2014 Form 1098T which your CC should provide to you.
Your parents would have to file jointly.
The credit is 100% of the first $2000 spent on tuition, fees, books, and 25% of the next $2000 spent on tuition, fees, books.
Thus if you and your parents meet all other requirements, the AOTC would be $1500, since you spent $1500.
It is not too late to file the 2014-2015 FAFSA.
What is your parents’ total adjusted gross income?
@bearly It is NOT too late to apply for aid for THIS CURRENT school year. Do that. You may end up with a Pell Grant, which can help with next years costs if you bank it.
Just go to FAFSA and fill out the one for 2014-15 school year and submit. .
Bearly. I’m very unclear about your financial situation. If your family is low income, yes…apply for aid now for the current school year. You would complete the 2014-2015 FAFSA fo that…using 2013 tax return information.
So if you are low income, you may get grants to pay for your 2014-2015 (current school year) costs. Then see where that leaves you before deciding to deal with the AOTC for 2014.
@thumper1 @Madison85 @mom2collegekids do you guys mean for 2015-2016? I submitted 2015-2016 FAFSA, I thought 2014-2015 would be over already since that FAFSA would have been submitted a year ago (?)
We mean you should also submit 2014-2015! I believe the period of time for submitting the 2014-2015 FAFSA goes from 1/1/14 to 7/1/15.
What was your EFC from the 2015-2016 FAFSA?