Using College Tax Credits Proactively

CTScoutmom
Mon, 27 Aug 2012 11:42:24 +0000

You should know by mid-2013 where they are going, and what they will be paying (other than books). I would not adjust withholding until then - and at that point adjust it to pay yourself the credit over the remaining months of the year. Hopefully, we will also know by then if the tax credit is extended. I would only adjust based on the less-generous Hope Credit until we know it has in fact been extended beyond 2012.