<p>is wrong (and I doubt that it is the case).</p>
<p>I have been doing our taxes and was expecting to take the lifetime learning credit of $2000 for daughter. Turbotax used the Hope credit and then did not add back the foreign tax credit, so to me it looks like that amount may be incorrect.</p>
<p>And reading all 80 pages of Publication 970 online has given me a headache. I think I might just look for a tax prep person. </p>
<p>And while I am ranting, why does not the college use box 1 on the 1098 which would be payments made instead of box 2 which only covers amount billed first semester freshman year (they billed for spring 2008 in Dec 2007, why not show it)?</p>
<p>You can use a 529 and a Hope at the same time. You cannot use the same expenses for both. So you can use tuition & fees for Hope, other qualified expenses for 529 (room and board is a qualified expense for 529 but not for other tax benefits).</p>
<p>Hope Tax credit can be claimed for only the first 2 years of college. The maximum for one student in one tax year is $1650 (**100% of the first $1,100 **of qualified education expenses you paid for the eligible student and 50% of the next $1,100 of qualified education).</p>
<p>Lifertime learning credit the maximum in a year is $2000. ( 20% of the first $10,000 of qualified education expenses you paid for all eligible students)</p>
<p>Don’t really understand the foreign tax credit thing as it does not apply to us. But, looking at it quickly, I think it is just used in this context to figure out whether your MAGI is too high for you to qualify for the education tax credit.</p>
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It will not actually change your foreign tax credits in any way.</p>
<p>Turbo tax should calculate the most beneficial credit for you to take</p>
<p>Trying to find an answer to how S deals with an adjustment to prior years scholarships is giving both of us a headache (Box 6 of the 1098). Neither S or I can find an answer anywhere.</p>
<p>cmbmom… Swimcatsmom is correct in that the foreign tax credit is used only for computing MAGI (a very technical tax term!). Let TurboTax do the work for you and you’ll be happy. As for the various education credits and deductions available today, I have no clue how anyone can do it manually. With TurboTax, we do almost 250 scenario calculations to determine your most advantageous way to claim these credits/deductions. Good luck!</p>
<p>Well, I am impressed and thank you, Bob. I knew the foreign tax crredit was only to be added back to to compute MAGI. And I think I figured out why Turbotax used the Hope credit…I answered yes when it asked if our daughter was a freshman.</p>
<p>And swimcatsmom, thank you. I often read your replies about financial aid. You are one smart mom.</p>
<p>How about developing a program that will fill out the FAFSA and the PROFILE based on input from the user, much like TurboTax does for the tax return? There would certainly be a market for it, especially from the parents on CollegeConfidential. Just take a look at the Financial Aid forum or scan the posts in the Parents Forum. You’ll see the confusion and frustration we’re all suffering from!</p>
<p>I’ve made the suggestion over on the Inner Circle forums, but it’s great to be able to suggest it directly to a VP. And thanks for your help here on CC!!</p>
<p>OOOhhhhh … was it thumper1 who emailed Turbotax about the FAFSA fill-ins? And did the VP come here as a result? If so, we owe thumper a HUGE thank you!! :)</p>
<p>I tried TT after they bought out the tax program company that I used for many years. Its OK but when the programmers started their own company, I went to them for cost and innovations. FAFSA has been on this program for now 2 years.</p>
<p>I’m dredging up this old thread to report that TurboTax is beta-testing a TurboTax FAFSA program. They’re running pilot testing now, so hopefully this program will be up and running sometime this year.</p>
<p>Although the FAFSA isn’t that hard to fill out, I’m never quite sure whether I’m supposed to report certain income and assets. I’m anxious to see whether I’ve been doing it right or not.</p>
<p>How about having Turbo Tax merge with the FAFSA and/or Profile and spill in the right amounts in the right fields. I wrote Turbo Tax and suggested that…and they said they would pass the message on…and I’m a member of their “Inner Circle” too. </p>
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<p>Ahem…I made this suggestion to Turbo tax last year…how come <em>I</em> am not one of the PILOT folks. This is my last year doing FAFSA…aw come on!!</p>
<p>Me, too, Thumper! I posted a suggestion in their Inner Circle forum about FAFSA but didn’t get picked to beta test . But at least they listened and it will make things easier for parents down the road.</p>
<p>I thought last spring was my last time doing the FAFSA, too, as my D will be graduating this May. BUT NO… I just found out that we have to keep on filling it out – <em>for med school</em> for Pete’s sake. I had no idea we’d have to do it for that, too!</p>
<p>TurboTax made a huge error for me this year and I’ve had to file an amendment (the day after filing). I was due the Earned Income Credit and TurboTax completely missed it (as did I as I electronically signed and e-filed my return). Luckily I do some of my best “work” as I was falling asleep and realized the error. </p>
<p>I dunno what’s up but I have been a TurboTax fan for years. I feel skeptical right now.</p>
<p>They had a lot of late updates this year and I think there were more glitz’s. I always liked them but this time I had a deduction owed me, but it wasn’t until I saved it and came back on did it show up. They are aware of the problems and I’m sure will fix them or lose buyers. They are very good at showing you all the deductions you can have and what is needed. My sister got a much larger charitable deduction this year (with the proper receipts) and work supplies with their help. Took a few hundred off her bill and everything helps.</p>
. But at least they listened and it will make things easier for parents down the road.</p>