<p>This is a question for seasoned college parents and students. This will be the first year I am filing taxes as a college parent, and, for my daughter, the first year she will be filing taxes related to her own employment during the summer and on campus. Obviously, we want to make sure we take advantage of every opportunity and break (so we can pour the money right back into UD of course :) ). We prepare our own taxes. I am hoping a few parents/students can recommend easy resources for understanding the tax credits, who takes them, etc. Also, inquiring as to what type of tax documentation the university provides, if any, related to money paid to them during the tax year. We covered D's expenses by UD scholarship, subsidized loan (in D's name of course) and out of pocket (including some money which came from a 529). Any suggestions as to resources, pitfalls to avoid, etc, would be appreciated. Thanks much.</p>
<p>Can’t tell you how to make it easy to understand, only a few places to start. If you do your own taxes using any of the software programs, they likely have provisions.</p>
<p>[Tax</a> Breaks For College Students and Their Parents | Tax Break: The TurboTax Blog](<a href=“http://blog.turbotax.intuit.com/2011/02/28/tax-breaks-for-college-students-and-their-parents/]Tax”>http://blog.turbotax.intuit.com/2011/02/28/tax-breaks-for-college-students-and-their-parents/)
[The</a> College Tax Breaks Explained - SmartMoney.com](<a href=“Spending & Saving - MarketWatch”>Spending & Saving - MarketWatch)</p>
<p>For the most comprehensive but least intelligible rundown You could try this year’s version of: <a href=“http://www.irs.gov/pub/irs-pdf/p970.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p970.pdf</a></p>
<p>OP - Colleges do send out statements that PURPORT to indicate the amounts paid. THESE CANNOT BE TRUSTED. So Job #1 when you receive the document is to pull out your payment records and compare them to the university’s statement. Then you need to pull our records for qualified expenses that were not paidpayments to UDel. Books are a good example, given that many students buy textbooks at Liebermans or online, etc. rather than at the university bookstore.</p>
<p>Whether you take the Tuition Deduction (on 1040 pg. 1) or education credits (on page 2) largely depends on your Adjusted Gross Income. Credits are better, unless you don’t qualify for them due to your AGI. Also, it’s almost always better for the parent to report expenses, because college students generally don’t have much tax liability to offset.</p>
<p>Good luck. It’s not that bad, really.</p>