§529 Plans, American Opportunity, & Lifetime Learning Credits

We all know that paying for higher education is a huge drain on any family’s resources. Happily, the tax code provides a wide variety of ways to help families pay for that higher education, including the American Opportunity Tax Credit, the Lifetime Learning Credit, §529b plans, IRAs, savings bond programs and Coverdell ESAs. 

Our software does the math, of course, but we tax preparers need to understand when a taxpayer qualifies for these opportunities and what documentation is required of that taxpayer. Since the American Opportunity Tax Credit is a partially refundable credit, that’s also part of our due diligence requirements on Form 8867. We have to be very cautious when deciding that a client qualifies for that particular credit!

Canopy's new CPE and CE eligible course walks through these various tax savings opportunities, providing examples of when the credits can be applied. We’ll talk about how to allocate 529b plan distributions so as to maximize tax savings. We’ll also look at Form 8862, used to reinstate a previously disallowed tax credit, and share tips for dealing with clients who may not have all their paperwork in order. 

This class will give you confidence when dealing with clients’ education expenses! After taking this course, you’ll: 

• • • Understand requirements for clients to qualify for the American Opportunity Tax Credit
    • Understand requirements for clients to qualify for the Lifetime Learning Credit
    • Be able to determine the taxable portion of a distribution from a §529 plan
    • Be able to explain other tax-advantaged ways to pay for education

Course information: 

• • • Level: Beginner
    • Cost: Free
    • Field of Study: Taxes
    • Advanced Prep: None
    • Credit Type: CE & CPE
    • Credit Hours: 1

Sign up today and earn 1 credit hour!