Saturday, February 6, 2016

Education Credits

One WEIRD part of tax law is the educational credit! The idea is that, if you go to school, you should pay less money in taxes. School is important, no matter how old you are.

The problem is that there are TWO educational credits. These were made by two different groups of people, who didn't talk to each other*. They had completely different ideas about education and payments. For example, one group thinks that textbooks count as educational expenses, while the other group doesn't. It's totally inconsistent!

Of course, there are lots of exceptions and counter-rules, like "what if textbooks are part of tuition?" and "what if you have a scholarship"? Some scholarships count towards the amount of tax money you save, while others don't. And it makes a difference if you pay all of your tuition in the first year, or if you pay it in installments.

Until I get these things sorted out in my head, I'll probably have to do both. That is, if I get a person who paid tuition, I'll calculate how much they save on the first tax credit, then how much they save on the second tax credit, and give them the credit which saves them more money. I should eventually reach the point where I can get a person's tuition information, and automatically know which educational credit is better for them.

*Okay, not really. Congress makes the tax rules. And since we have lifetime politicians in Congress, some people probably were around for the creation of both credits. Still, if I were in Congress, I wouldn't have approved such a weird, inconsistent system.


Stephanie said...

I respect how you give your all to everything that you do. Whether it's making videos, working at the pizza place or learning tax law.

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Rught Bilodeau said...

Education caddis are using on the fast moving on the government side. Because first the government give permission to study these things with do my homework online. After that they will get education carded as well from the people.

Coaldrake said...

This was the best solution that has been got for making the education system better essay company that can do essays in 3 hours than ever. Getting the educational credits is for the student that really likes to gain the education for their better future.