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I have an income tax question?

Discussion in 'Off Topic Threads' started by senior smoke, Mar 26, 2011.

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  1. senior smoke

    senior smoke Well-Known Member

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    Hello:
    My nephew is a postgraduate student in a masters program. He is carrying a heavy credit load and is not working. He is paying monthly payments and interest on his student loans. He is living off of his savings and has his own apartment. My question is, Does he qualify for the "lifetime learning credit" and or 529 college savings plan as he purchased a new laptop computer? It also mentions additional credit if living in a Midwest disaster area. He lives and goes to college in Milwaukee Wisconsin? With having no income earned in 2010, can he file a tax return under these circumstances and possibly get a refund in either of these programs?
    Steve Balistreri
     
  2. front242

    front242 Member

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    lifetime learning credit is non-refundable. that means no tax liability, no credit. 529 plan question makes no sense. The money should be in the 529 plan already and then could be taken out for use to buy the computer. Student loan interest comes off as an adjustment. No income, no adjustment. American Opportunity credit is refundable but is only for 1st 4 years of upper education. Master degree program is not eligible. Sounds like a strike out all the way around.

    The midwest disaster area thing I'm not sure on. I'm on west coast and don't see it. Maybe DickGtax will chime in. He seems to know his stuff and I believe is further east than I am.

    Tim O
    F²4²
     
  3. N. J. BOB

    N. J. BOB Active Member

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    GREAT RESPONSE 242 ....
     
  4. senior smoke

    senior smoke Well-Known Member

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    Tim:
    Thanks for the info. I will relay your response to my nephew.
    Steve
     
  5. shelly

    shelly TS Member

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    IRS Pub 970 (URL above) contains plenty of info about education tax benefits although I'm sure glue sniffer22 will have a valuable input.
     
  6. senior smoke

    senior smoke Well-Known Member

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    Thanks Shelly.
    Steve
     
  7. Shooting Coach

    Shooting Coach Well-Known Member

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    How much did he make?

    Send it in to IRS!
     
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