- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Why is the limit for lifetime learning credit the same for individuals and married couples? Or is it not?
My wife and I are both graduate students who could claim up to a $2000 credit when filing individually before getting married. It seems that now we must file a joint return in order to qualify for the credit and still the limit is $2000 for us both, whereas before it was $4000 ($2000 each).
Am I reading the limit wrong or does the IRS significantly penalize married students?
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
The other spouse can claim the Tuition and Fees deduction on line 34 of form 1040 (line 19 of 1040A).
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
That's a good point, thanks!
Although, that deduction is capped at $4000 which is quite smaller than a $2000 credit.
Although, that deduction is capped at $4000 which is quite smaller than a $2000 credit.
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Depending on the course of study, the cost may also qualify as a job expense. The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs."
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Up to $2,000 credit per return
https://www.irs.gov/publications/p970/ch03.html
does the IRS significantly penalize married students
Alas, that's the way Congress wrote the tax law,
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Also, you can't claim the lifetime learning credit if your filing status is married filing separately.
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Thanks for your response. That's how I read it too, but was hoping I was wrong. Just doesn't make sense to me to have such a high penalty for getting married without a way to get around it (such as filing separately)
June 7, 2019
3:11 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Unfortunately, there are lot of tax "marriage penalties."
<a rel="nofollow" target="_blank" href="http://taxfoundation.org/article/understanding-marriage-penalty-and-marriage-bonus">http://taxfounda...>
(It harkens back to the day when unmarried couples did not live together, so a married couple had fewer living expenses than two single folks...)
<a rel="nofollow" target="_blank" href="http://taxfoundation.org/article/understanding-marriage-penalty-and-marriage-bonus">http://taxfounda...>
(It harkens back to the day when unmarried couples did not live together, so a married couple had fewer living expenses than two single folks...)
June 7, 2019
3:11 PM