Which education credit to take?

2 Responses to “Which education credit to take?”

1. Judy says:

   November 15, 2010 at 10:14 am

   For the education credits, if you qualify for both, figure them both and take whichever gives you the larger credit. I’m guessing that will be the Hope credit.

   Re the uniforms and mileage, you don’t give enough info. Are they for a business you own, or for a job where you work on a W-2? If they’re for your own business, they are most likely deductible on schedule C, but would have to know more about the mileage to know whether it qualifies.

   If for a job, they are only deductible if you itemize. You’d have to subtract 2% of your AGI from your total unreimbursed employee expenses, and can deduct the amount over that as an itemized deduction. Again, would have to know more about the miles to say whether they count or not. And if you don’t itemize, no you can’t deduct them.
2. v b says:

   November 15, 2010 at 10:32 am

   Try the return both ways, but my rule of thumb says Hope is better.

   As for mileage and uniforms.
   Uniforms (eg, ugly things with your company’s name on them) are unreimbursed business expenses.
   Mileage for work over and above commuting is also an unreimbursed business expense (why isn’t the company paying anything?).

   Both of these go on schedule A, BUT you dont’ get to count the first 2% of AGI. If you make $50,000, the first $1000 doesn’t count.

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