The IRS will not accept such logic.I've got a question about the American Opportunity Credit. I see from the IRS site that it can be claimed for expenses from the "first four years of post-secondary education". So I can take this credit even though my fourth year of post-secondary education is in graduate school, correct? (I completed my undergrad degree in three years).
Making Work Pay Credit
You may be able to take this credit if you have earned income from work. Even if your federal income tax withholding was reduced during 2009 because of the credit, you must complete Schedule M (Form 1040A or 1040) and claim the credit on your return to benefit from it. You cannot take the credit if your modified adjusted gross income (AGI) is $95,000 ($190,000 if married fiing jointly) or more, you are a nonresident alien, or you can be claimed as a dependent on someone else's return.
The IRS will not accept such logic.
This seems to parallel my situation, since I was a first-semester graduate student for the 2009 fall semester, and I had not completed my undergrad degree as of the beginning of 2009. So this seems to indicate I can take the credit?Example 2. After taking classes at College V on a
part-time basis for a few years, Shelly became a full-time
student for the 2009 spring semester. College V classified
Shelly as a second-semester senior (fourth year) for the
2009 spring semester and as a first-semester graduate
student (fifth year) for the 2009 fall semester. Because
College V did not classify Shelly as having completed the
first 4 years of postsecondary education as of the begin-
ning of 2009, Shelly is an eligible student for tax year 2009.
Therefore, the qualified education expenses paid for the
2009 spring semester and the 2009 fall semester are taken
into account in calculating any American opportunity credit
for 2009.
The IRS will not accept such logic.I've got a question about the American Opportunity Credit. I see from the IRS site that it can be claimed for expenses from the "first four years of post-secondary education". So I can take this credit even though my fourth year of post-secondary education is in graduate school, correct? (I completed my undergrad degree in three years).
Well how about this IRS example from Pub 970:
This seems to parallel my situation, since I was a first-semester graduate student for the 2009 fall semester, and I had not completed my undergrad degree as of the beginning of 2009. So this seems to indicate I can take the credit?Example 2. After taking classes at College V on a
part-time basis for a few years, Shelly became a full-time
student for the 2009 spring semester. College V classified
Shelly as a second-semester senior (fourth year) for the
2009 spring semester and as a first-semester graduate
student (fifth year) for the 2009 fall semester. Because
College V did not classify Shelly as having completed the
first 4 years of postsecondary education as of the begin-
ning of 2009, Shelly is an eligible student for tax year 2009.
Therefore, the qualified education expenses paid for the
2009 spring semester and the 2009 fall semester are taken
into account in calculating any American opportunity credit
for 2009.
Sorry guys, I read 4 pages and gave up trying to find the answers.
SO and I purchased a townhouse in MD, she will be the primary resident of the property due to the fact that I will be living in NY for now. Her name is first in the title then me.
1. We will each pay half of the monthly mortgage. When we do our taxes each separately next year, can we each claim half of the interest paid?
2. Will I need to pay any additional taxes / misc. payments for owning a property in MD and living in NY?
3. Since we are not married, is it $8000 first time buyers or more?
Yes, we will be getting marry in the near future.
1) Given that both of your names are on the deed; the interest taxes and credit can be split up any way that is most advantageous to you.
2) You can choose to claim MD as your home; pay MD and NY income taxes (however it is broken out) or just pay NY income taxes. NY may not allow you to deduct MD property taxes.
3) The 8K credit assumes
- That the property is worth 80K.
- You have not owned a home in the past three years.
- She has not owned a home in the past three years.
Thanks! for #2, since if I just want to pay NY income taxes, can the property tax/half mortgage deduction goes to my SO and I just get the deduction for paying half the mortgage?
The two skipped payments will add up to to least 4 payments on the back end.ouch...$989 owed. House was reevaluated for about 50% of what I paid so less taxes...I then did a modification, skipped two mortgage payments and my rate adjusted down.
Not as bad as I thought considering I made about $11k more this year and skipped $5k in payments on the house. I got back about $500-600 last year I think.
Federal return does not have anything for rent on the 1040/Schedule A areasI'm using Taxact.com free online version and there is no place to enter the rent that I paid for 2009. I got a Certificate of Rent Paid form from my landlord, yet I can't find where I enter that online. Any help would be appreciated. Thanks.
Federal return does not have anything for rent on the 1040/Schedule A areas
Many states may have a line item for it.
I purchased some P&G (PG) stock a while back (in 2004). Then, a couple of years ago, when Folgers merged with Smuckers, P&G common stock holders were given the option to exchange some/all/none of their stock for folgers stock, which then converted into 1 share of SJM stock. At the time the valuation was a good deal, so I exercised my option and exchanged some of my stock. Then, in 2009, I sold that stock. I'm having a hard time figuring out what the cost basis for the SJM stock should be.
Here's some more info on the exchange: http://www.streetinsider.com/Merger...f+Folgers+and+J.M.+Smucker+(SJM)/4052459.html
In doing my taxes this year, I just took the cost basis of the original P&G shares purchased in 2004 that were later exchanged as the cost basis (plus fees yada yada yada), but I don't know if that's the correct way of doing it.
Why was the money taxed? If it was paid as extra income then you may be able to claim it. If it was paid as money for the classes or a reimbursement then not.
You need to determine the cost exchange (value) from the P&G to Flogers. Then how many shares of Flogers becamse 1 SJM.
From that point; you have the value of a P&G to SJM.
Now when you sell SJM, you know the equivalent P&J stock and you know that price.
Or just convert everything to SJM onyou paperwork and go from there.
You need to determine the cost exchange (value) from the P&G to Flogers. Then how many shares of Flogers becamse 1 SJM.
From that point; you have the value of a P&G to SJM.
Now when you sell SJM, you know the equivalent P&J stock and you know that price.
Or just convert everything to SJM onyou paperwork and go from there.
Lets just take round numbers to make it simple:
Lets say I purchased $10k in P&G stock, 100 shares at $100 a piece. Then, 4 years later, those same 100 shares were worth $9k, or $90 a piece. I was able to exchange them for 200 shares of Folgers, and in turn 200 shares of Smuckers. Then, last year, I sold the 200 shares for $11k. Am I correct in reporting the cost basis for the 200 shares of Smuckers as $10k?
HOw do you not know how much you have contributed during the year? Most brokage companies keep track of this for you. They also give you the option of applying the funds either in the current year or in the next as long as its before april 15th. Anyways the form is 5329 where you calculate the penalty.It seems I overcontributed to my 2008 ROTH by $177. So I guess I have to roll this into my 2009 ROTH contribution. What form do I have to fill out to report this and pay the penalty or tax on it?
Thanks!
HOw do you not know how much you have contributed during the year? Most brokage companies keep track of this for you. They also give you the option of applying the funds either in the current year or in the next as long as its before april 15th. Anyways the form is 5329 where you calculate the penalty.
http://www.irs.gov/pub/irs-pdf/f5329.pdf
How you end up with zero? Its 6% of your excess contribution. what do you mean you "said the 177 goes to 2009?" Im confused.yeah, stupid me, I have two mutual funds in two different brokerages and I added them up wrong somehow.
So...I took form 5329 and went to Part IV for Additional Tax on Excess Contributions to Roth IRAs and I ended up with $0..because its asking me to enter 6% of the smaller of the values and 6% of zero is zero. And since I haven't hit 5000 for 2009, i just said the 177 goes to 2009. Did I make another math error or do I not have to pay any excess tax for my overcontribution for 2008?