question about lifetime tax credit for qualified students...?
I went online to H&R Block to use their calculator to see if i was eligible for the lifetime tax credit. i am a senior at a university that qualifies for the credits. i know i am not eligible for the hope one because i am a senior. however, when i put my information into the calculator it says "You're not able to benefit from the tuition deduction or education credits because your taxable income is $0." i made $7,000 last year. my qualified expenses are $9,163.
i guess i dont really understand what this means, because when i look up on the IRS website at the requirements i do qualify. i am not being claimed by anyone else.
- hrblock.lauraLv 61 decade agoFavorite Answer
If you are filing as single you will have no tax liability. You reduce your income by $5450 standard deduction for filing single, then you reduce by your personal exemption of $3500. Therefore you have no taxable income. If you have no taxable income you have no tax.
Education credits are non-refundable credits so this means they cannot be taken if you have no tax liability. You have no tax to take the credit against. Most credits are not able to be carried over to the next year, including the education credits.
Bottom line you have to have a higher income to be able to benefit from claiming any education credits on your income tax return.
Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
- Bostonian In MOLv 71 decade ago
The LLC is not refundable. Since your tax liability was already $0 due to your extremely low income, you cannot get any benefit from it. There's a big difference between qualifying for it (you do) and getting any benefit from it (you don't).