Publications

• 30 Second Ideas
• Accounting Updates
• Alerts
• Articles
• Business Surveys
• Construction Edge
• Healthcare Edge
• Insurance Edge
• Legal Talent
• Manufacturing Edge
• Not-for-Profit Edge
• Quick Links & Good Ideas
• SEC Edge
• Strategy Insights Blog
• Surviving the Upturn
• Tax Highlights

College credits - HOPE you got it right!!

There are multiple college credits that are intended to assist taxpayers with the high cost of college education for their children. However, these multiple choices of credits create a confusing decision for taxpayers who wish to simply follow the rules and claim the credit that is properly allowed them.

Now the IRS has said that multiple taxpayers have incorrectly claimed the HOPE credit for more than just the first two years of a student's college education. However, the IRS claims that they have no authority to notify these taxpayers of the error on their returns as they are filed.

Unfortunately, the IRS is now reviewing these claims for the HOPE credit and denying the credit to taxpayers who have claimed it incorrectly. Besides the back tax that is due, there are penalties and interest that may apply. Also, since many of these college benefits are phased out, a majority of these credits are claimed by lower-income taxpayers and not by high net worth families.

For a discussion of the various college credit/deduction benefits, please contact your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.