2018 Scenario #2 (with 3 Education Scenarios)
Sterling Scenarios: All these scenarios include:
Sterling Scenario #3-Same scenario--what if she received $4,500 in Scholarships and grants instead? This is more than the qualified expenses, so technically not entitled to an education credit now. Delete the credit, but what do you do with the excess scholarship?
Sterling Scenario #4- Same scenario, while you may not think they are entitled to an education credit, the IRS does say if you claim the scholarship/grant as income, you can then take an education credit (you can find more info on this in PUB 970) **as long as the scholarship isn't specifically for tuition purposes only.
Have fun, interview notes below, and complete returns at the bottom of this page. Slides
Sterling Scenarios: All these scenarios include:
- Self-employment: Rideshare Driver (Uber with 1099-Misc, 1099-K, and Uber Statement), also purchase of health insurance for self-employed, Identity Theft Pin
- Several Brokerage Statements (make sure to look at PUB4012 page D23-25 Exception to Entering Each Transaction on a Separate Row (Code M)
- Retirement-began in 2004 and requires taxable portion being calculated. Use this handy-dandy tool, you will LOVE LOVE LOVE IT! https://cotaxaide.org/tools/Annuity%20Calculator.html
- Cancellation of debt
Sterling Scenario #3-Same scenario--what if she received $4,500 in Scholarships and grants instead? This is more than the qualified expenses, so technically not entitled to an education credit now. Delete the credit, but what do you do with the excess scholarship?
Sterling Scenario #4- Same scenario, while you may not think they are entitled to an education credit, the IRS does say if you claim the scholarship/grant as income, you can then take an education credit (you can find more info on this in PUB 970) **as long as the scholarship isn't specifically for tuition purposes only.
Have fun, interview notes below, and complete returns at the bottom of this page. Slides