There is no education credit or deduction that will get you a full $4000 in the refund. For the education tax credit, the $4000 is the maximum qualified education expenses allowable for you to calculate the credit amount. For the Tuition and fees deduction, it could get you up to a $4,000 deduction which only reduces your taxable income thus lower your tax bracket. It is not a great tax saving. The state taxes have nothing to do with this.
If you want to know if your daughter meets the Rhode Island filing requirement, please read:
According to Rhode Island Instructions for Form RI-1040:
- If you are a Rhode Island resident and you are required to file a federal return, you must also file a Rhode Island return. Even if you are not required to file a federal return, you may still have to file a Rhode Island return if your income exceeds the amount of your personal exemption.
- If you are a part year Rhode Island resident and are required to file a federal return, you must file a Rhode Island return.
- If you are a Rhode Island nonresident who has to file a federal return and has income from Rhode Island sources, you must file a Rhode Island return.
“Resident” means an individual who is domiciled in the State of Rhode Island or an individual who maintains a permanent place of abode in Rhode Island and spends more than 183 days of the year in Rhode Island.
@KamiSawZe
I don't know if this affects anything, but we live in CT and her school is in RI. Do we need to file a RI state tax return?
you'll need to report more information to answer the question. Do you owe any tax ? are you getting a refund equal to all your withholding?
the deduction can't drive the taxed owed below zero. State situation has nothing to do with this.
There is no education credit or deduction that will get you a full $4000 in the refund. For the education tax credit, the $4000 is the maximum qualified education expenses allowable for you to calculate the credit amount. For the Tuition and fees deduction, it could get you up to a $4,000 deduction which only reduces your taxable income thus lower your tax bracket. It is not a great tax saving. The state taxes have nothing to do with this.
If you want to know if your daughter meets the Rhode Island filing requirement, please read:
According to Rhode Island Instructions for Form RI-1040:
- If you are a Rhode Island resident and you are required to file a federal return, you must also file a Rhode Island return. Even if you are not required to file a federal return, you may still have to file a Rhode Island return if your income exceeds the amount of your personal exemption.
- If you are a part year Rhode Island resident and are required to file a federal return, you must file a Rhode Island return.
- If you are a Rhode Island nonresident who has to file a federal return and has income from Rhode Island sources, you must file a Rhode Island return.
“Resident” means an individual who is domiciled in the State of Rhode Island or an individual who maintains a permanent place of abode in Rhode Island and spends more than 183 days of the year in Rhode Island.
@KamiSawZe
Okay, thanks. We were already getting a sizeable return without having any taxes withheld since my income is exclusively freelance reported in 1099-MISC. We're still in a low-income bracket and have two children. My wife's tuition surpassed the max $4000 amount when I got to the last page of entering in school payment info. That page really makes it sound like that amount will go into the return. It should probably be worded better. It made no difference in the return total, so I guess we reached whatever threshold was in place.
If you are looking at the summary page for deductions and credits and see for "Education" $4000, that is the total of expenses entered but not the total credit you necessarily received.
!. Click on "Tax Tools" in the left hand menu
2. Click on "Tools" in the left hand menu
3. Click on "View Tax summary" in the center screen
4. Click on "Preview my 1040" in the left hand menu
Now look at line 18c on the 1040 to see the American Opportunity Credit refundable portion which means you get that credit no matter what your tax liability is. You can also scroll down to schedule 3 to see the non-refundable education credits. Those are the credits that are limited by the amount of your tax liability.