College starts next week for our daughter. Thus a tuition and housing bill will be due in September. This made me think of the American Opportunity Credit, and wondering how much we might be eligible for.
After a lot of number crunching and estimating, I came up with credits worth between $2075 and $2500. The maximum is $2,500 based on a maximum of $4000 paid in qualified tuition expenses. Room and board are NOT qualified tuition expenses. It is actually our biggest expense.
This means we will get a refund in the spring. I'm estimating approximately $1178, up to $1553 depending on the American Opportunity credit.
I'm going to firm it all up once we have paid tuition in full. I've thought of changing withholding for the last two or two and a half months of the year. I figure it might be nicer to have the money earlier than wait for a refund. That will require some more number crunching later.
Estimating our 2016 Tax Return
August 15th, 2016 at 01:16 am
August 15th, 2016 at 01:35 am 1471221329
August 15th, 2016 at 01:43 pm 1471264992
Our tax guy gave us a set minimum amount to pay in quarterly taxes, but if at the end of the fourth quarter it's clear she earned less, can I make the last payment less? Or should I play it safe so I don't risk a penalty?
August 15th, 2016 at 08:46 pm 1471290378
August 16th, 2016 at 12:02 am 1471302163