Income tax credits for college costs delayed
SALT LAKE TRIBUNE
SALT LAKE CITY -- Tax filing season officially opened on Wednesday, but early-bird filers applying for college tax credits will have to cool their heels for a couple of weeks before filing claims.
In a news release, the Internal Revenue Service announced that taxpayers won't be able to file Form 8863 until mid-February. Form 8863 applies to the American Opportunity Tax Credit and the Lifetime Learning Credit, two tax credits designed to offset the costs of higher education.
American Opportunity Tax Credit: Those making less than $80,000 a year (or $160,000 for couples filing jointly) can qualify for a tax credit of up to $2,500 for expenses incurred during the first four years of college, including tuition, fees and books.
Lifetime Learning Credit: It grants a credit of up to $2,000 for tuition, fees and materials for students, spouses and dependents in
Blame the delay on the fiscal cliff.
IRS spokesman Bill Brunson said the tax changes adopted by Congress in early January pushed back the form review process.
The backlog, however, will not hinder filers from pursuing other education-related tax claims, including deductions for tuition and fees as well as student loan interest. Filing for these benefits can start right away.
The IRS estimates the education tax credit delay will affect nearly 3 million U.S. taxpayers who typically file Form 8863 during the first two weeks of tax season.
The backlog will not hinder filers from pursuing other education-related tax claims, including deductions for tuition and fees as well as student loan interest. Filing for these benefits can start right away.