💙💚📚✏️ FRESH START PRO TAX TEAM ✏️📚💚💙 🌟 TAX KNOWLEDGE TUESDAY! 🌟 GOOD MORNING, TAX PROFESSIONALS & FUTURE TAX EXPERTS! ☀️ Happy Tuesday, Team! 💪🏽 Every day is another opportunity to LEARN, GROW, and become more knowledgeable in the tax industry! Remember, being a successful tax preparer is not just about entering numbers into software. It's about understanding tax laws, asking the RIGHT questions, verifying documentation, and making sure our clients receive every credit they LEGALLY qualify for! 📚 TODAY'S TAX EDUCATION TOPIC: FORM 1098-T & EDUCATION TAX CREDITS ✏️ WHAT IS FORM 1098-T? Form 1098-T is a tuition statement issued by eligible educational institutions to report certain tuition payments, scholarships, grants, and other educational information. 🚨 IMPORTANT: Just because a client receives a 1098-T DOES NOT automatically mean they qualify for an education tax credit! Tax preparers must verify eligibility! ━━━━━━━━━━━━━━━━━━ 🎓 1️⃣ AMERICAN OPPORTUNITY TAX CREDIT (AOTC) 💰 Maximum Credit: $2,500 per eligible student 💵 Up to $1,000 may be refundable if the taxpayer meets the refundable-credit requirements. ✏️ WHO MAY QUALIFY? ✅ Students pursuing a degree, certificate, or recognized educational credential. ✅ Students enrolled at least half-time for at least one qualifying academic period. ✅ Students who have NOT completed their first four years of higher education before the tax year begins. ✅ Students who have NOT already used the AOTC for four tax years. ✅ Students without a federal or state felony drug conviction as of the end of the tax year. ✅ Taxpayers who meet income, identification, filing-status, and other IRS requirements. 📌 REMEMBER: Parents may qualify to claim the credit for an eligible dependent student. ━━━━━━━━━━━━━━━━━━ 🚫 2️⃣ WHAT CAN DISQUALIFY A CLIENT FROM THE AOTC? ❌ The student already completed the first four years of higher education before the tax year began. ❌ The AOTC was already claimed for that student for four tax years. ❌ The student was not enrolled at least half-time in an eligible program.