We do not qualify for AOTC or LLC credits due to income limits. I will contact the Bursar’s office on Monday to ask about an extension on the tuition due date because as properly pointed out by BelknapPoint, this must come up all of the time for this university, since it has a 1/2/20 tuition due date. There are lots of moving parts here, but having a reasonable strategy based on good information can both save money and keep you out of trouble with the IRS.
This is because a traditional four academic years extends over five tax years, and to claim five years of educational tax credits (AOTC and LLC), you need to have qualified payments made in all five tax years. Making the payment in January for the spring semester can be financially advantageous for you, especially in the senior year. This may be your first rodeo, but it definitely is not theirs. I have done this, and my experience was that the school billing people were understanding and always accommodated me. techmom99 makes a very good point about contacting the school, explaining your desire to make the spring payment in January using 529 funds withdrawn in January, and asking for some leeway with the due date. The IRS makes this unnecessarily complicated, so it takes some learning and getting used to. I’m glad that you figured out the IRS language you quoted was for the education tax credits and not 529s. BelknapPoint do you have any thoughts on this?
0 kommentar(er)
