<p>My daughter graduated in 2011 and I did not file my taxes for that year in 2012 since I did not owe taxes, I had no rush to file. Plus, I was angry at myself for not realizing that I should have paid more monies in the Spring of 2011 for tuition than I did so that I could have gotten more education credits when I filed.
Now that I am filing, I was wondering if the money we pay for the school year 2010-2011 in tuition in the fall of 2010 can be used for 2011 education credits in the 2011 tax return even though the payments were made in the fall 2010? As it happened, even though I paid over 7000 for the whole year of 2010, part of what I paid for Spring 2011 was done in the Fall 2010. Since I can only use up to $4000 in form 8863 for the 2010 return the rest is "wasted" unless I can apply it to Spring 2011. Can we only claim the payments made in 2011 even though some Spring payments were made in the Fall'10? I hope this question is not too confusing. This site was a lifesaver in 2007 when we were just starting. Lots of very smart people here. Thank you.</p>
<p>This may help:</p>
<p>"Q5. What are qualified expenses for purposes of the education tax credits?</p>
<p>A. In general, qualified expenses for the education tax credits include tuition and required fees for the enrollment or attendance at an eligible post-secondary educational institution. To be creditable, the expenses paid during a taxable year must relate to: (1) an academic period that begins in the same taxable year; or (2) an academic period that begins in the first three months of the following taxable year. See Publication 970, Tax Benefits for Education."</p>
<p>[American</a> Opportunity Tax Credit: Questions and Answers](<a href=“http://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers]American”>http://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers)</p>
<p>You can only claim the expenses paid in one tax year in that tax year. </p>
<p>But do go back and take a look at your un-filed situation for 2011. Part of the AOC is a credit that I think you might be able to get even if you don’t owe taxes. Read Pub 970 carefully. If you had any income at all that year, but don’t owe taxes, you also might be eligible for the Earned Income Credit. </p>
<p>Once you get that figured out, file the 1040 for 2011 (or the 1040x to correct your old 1040 for 2011). It really is OK to file tax forms late if you find out that the feds owe you money. They won’t charge a “late fee”. You just won’t get any interest on what they have to pay you.</p>
<p>Good luck!</p>
<p>yes, I was guessing that I shot myself in the foot by not realizing that I should have paid more in 2011 of the budgeted tuition. Too bad that what I paid in Fall 2010 for the Spring of 2011 could not be claimed in 2011 tax return. I already know that I get a total of $789 in credits but it could have been $1500. It was a crazy year knowing the end of college was coming, the school wanting their money before Jan 1st, etc.<br>
Maybe if we can spread the word for parents that have a budgeted tuition payment like Tuition Management Systems where you pay monthly for the college tuition, to be aware that they should try and budget the larger payments for the last Spring of college so they can benefit of more education credits come the end of that college year. MY budget was $5700 for fall 2010 spring 2011, I paid most of it in the Fall not thinking about education credits. I missed out because I was not thinking ahead. Is there a college tips thread where I can put this suggestion for others to benefit from my error? I thank all that took the time to confirm what I was hoping was not so.</p>