Form 1098-T

Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fourth part of our series about the most confusing provisions of the Internal Revenue Code addresses education tax incentives.

Why Is It Confusing?

  • There are a large list of incentives from which to choose
  • New stricter requirements to establish eligibility for some incentives
  • Determining eligibility is a complicated, arduous, lengthy process
  • Difficulty in determining the correct and appropriate benefit

Proving Education Tax Break Eligibility In 2016

Proving Education Tax Break Eligibility In 2016The American Taxpayer Relief Act of 2012 extended the American Opportunity Tax Credit (AOTC) through December 31, 2017. This tax credit assists with the cost of higher education expenses such as tuition, course materials and other certain eligible fees for four years, which differs from the Hope scholarship credit because the credit may be claimed for four years instead of the two allowed under the Hope credit.

Tax Provisions Of The Trade Preferences Extension Act of 2015

Tax Provisions Of The Trade Preferences Extension Act of 2015As well as the trade provisions that were the bill’s focus, the Trade Preferences Extension Act of 2015 (H.R. 1295), signed into law in June of 2015, contains provisions regarding tax law. The Act revises several Tax Code provisions, and extends a number of trade agreements as well as programs like trade adjustment assistance (TAA) and the Health Coverage Tax Credit (HCTC). TAA consists of programs that provide federal job training and assistance to workers, firms, farmers and communities that have been adversely impacted by foreign trade.