374,000 Taxpayers Forget To Claim Their $1,650 For Classes

A study done by the U.S. Government Accountability Office (http://www.gao.gov/new.items/d05684.pdf) shows that as many as 374,000 taxpayers are eligible to receive a tax credit, but do not apply for the program. The programs are the Hope and Lifetime Learning tax credits and the tuition tax deduction. These are programs for people continuing their higher education. The maximum Hope credit rises to $1,650 (100% of the first $1,100 of eligible expenses and 50% of the next $1,100 of expenses). These dollar amounts are doubled for students attending an eligible educational institution in the Gulf Opportunity Zone. The Hope and Lifetime Learning credits are phased out if a taxpayer’s modified adjusted gross income (MAGI) is between $47,000 and $57,000 ($94,000 and $114,000 if filing a joint return). For information about tax credits, see: http://www.irs.gov/faqs/faq-kw85.html. For details on the tuition deduction, see: http://www.irs.gov/faqs/faq7-4.html