<p>Does anyone know about the tax saver’s credit up to $1,000 for singles? Basically you contribute up to $2,000 and depending on your income, you can get up to a 50% credit for saving money in an IRA or 401k plan. The tax code says
“A student cannot take the credit. A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.”</p>
<p>My S graduated from college this past year and their last day of classes was April 30th, thus he was not in school during “any part of 5 calendar months” (only 4) Obviously this would be a loophole for a student whose school calendar did not run into May, so does that make it legal as long as they meet the income requirements for 2010? Thanks for any insight.</p>
<p>Did he graduate in April, or was it just the last day of classes in April? Did he have exams after April 30? If he didn’t graduate yet, he was still in school.</p>
<p>Are you claiming him as a dependent in that same year? Because he’d have to be a full time student for that. If you can’t claim him because of that, then I think he gets the credit.</p>
<p>He will probably be filing his own return, though he lived with us through July, so he could probably go either way. Started a job in August. I know he can’t take the credit if we claim him. I thought it would be a great incentive to get him to contribute to an IRA this year, even though he isn’t making much!</p>
<p>Looking for more opinions now that tax season is upon us…
Does anyone know if attending one’s graduation ceremony in May counts as the “being enrolled any part of 5 months” rule? Final exams were over April 30 and he opted to go back the next week for graduation. Does attending it make him ineligible for the tax saver’s credit, which could be $1000 for him this year? I can’t claim him as a dependent if he can do this, but I’m not sure I can anyway since he had a scholarship. (the providing half their support rule) That’s something else to figure out…</p>
<p>My parents are counting that (I had essentially the same schedule – classes ended at the end of April, graduation in early May) because they get far more money back if I am a dependent than I get for not being one. We tried it both ways. I am filing my own return, since I’ve worked this year, but that is how we are interpreting the student part of it.</p>