Question:What is an Education Tax Credit?

A wide variety of relief is available. In some cases you'll have to choose which to claim, based on what each is worth in your tax situation. There are tax exclusions, tax deferrals, tax credits, tax deductions, and relief from tax penaltie...

You may be able to take an immediate expense deduction of up to $105,000 for 2005, for equipment purchased for use in your business, instead of writing it off over many years. Additionally, self-employed individuals can deduct 100% of their...

Fund codes are established to account for expenditures from a specific funding source – i.e. the College receives a gift or grant to be used for a specific purpose or project.

Lifetime Education Tax Credit?

Q: I never knew I could claim these credits and have been filing a 1040EZ forever. What year did this Lifetime Education credit begin? Can I amend my taxes as far back as 2003 to get the credit (I know I qualify for it.)? Thank you!

A: You can file a form 1040X depending on the circumstances. Unfortunately 1040X is not accepted electronically, so you have to fill it up and mail it to the address in your tax jurisdiction. Currently you can go back four years that includes 2003.It is a very simple form to fill, but make sure you have all the previous 1040Ez that you used because you will be required to copy that information into the the 1040X, and then fill up the correct information as it should have been, in this case the Lifetime Education credit. You may need to find out if you had claimed for the Hope education credit which is a little higher than the Lifetime, but only for two years college after High school. in case you had not then this is what you would want to fill in as missing and not the Lifetime at least for the two years assuming its 2003 and 2004, thereafter Lifetime takes over. Remember use one form 1040X for each amendment...so if you are amending for 2003 - 2006 that if four years you need to file four 1040X's. I can assure it may be worth it, if the circumstances are as you presented.There are limitation that may not allow you to claim this credit for example if your filing status is head of household or married filing separate, but you should be good if filing single and married filing jointly.Too much information but I hope this is helpful.