The IRS has announced that processing of tax returns claiming education credits on Form 8863, Education Credits, will begin by the middle of February. Form 8863 is used to claim both the American Opportunity Tax Credit and the Lifetime Learning Credit. The IRS has determined that processing modifications are needed to accurately process Form 8863, which is the reason for the delay.
The IRS remains on track to open the tax season on January 30 for most taxpayers. This includes taxpayers claiming the student loan interest deduction on the Form 1040 series or the higher education tuition or fees on Form 8917, Tuition and Fees Deduction.
In addition to the educations credits, there are a number of other Education Related advantages that taxpayers should consider.
-Savings Bond Interest Exclusion
-Student Loan Interest Deduction
-529 Plan Contribution Deductions on state returns
-Penalty Exclusion on Early withdrawal from IRA for Higher Education Expenses
-Tax free earnings on ESA (Education Savings Account)
-Treatment of Scholarships and Fellowships
-Filing of Student FAFSA (Free Application for Federal Student Aid)
Make an appointment with one of our tax professionals to make sure you are getting the full benefit of all the education related tax advantages.