Get Enter Your Share Of The College Contribution Credit Here

A3. It is a tax credit of up to $2,500 of the cost of tuition, certain required fees and course materials needed for attendance and paid during the tax year. Also, 40 percent of the credit for which you qualify that is more than the tax you owe (up to $1,000) can be refunded to you.

To calculate an education credit, you must factor in: The amount of qualified tuition and related expenses you paid for each eligible student in the taxable year, and. The amount of your modified adjusted gross income for the taxable year.

You calculate the AOTC based on 100 percent of the first $2,000 of qualifying expenses, plus 25 percent of the next $2,000, paid during the tax year.

The credit is 40% of the planned gift's federal charitable deduction value, up to a maximum of $10,000 per individual or $20,000 per couple. For businesses, the credit is calculated at 20% of the value of the gift, up to a maximum of $10,000.

The Montana Tax Credits for Contributions to Student Scholarship Organizations program allows individuals and corporations to claim a 100 percent tax credit for contributions to approved student scholarship organizations (SSOs)— nonprofits that provide scholarships for private school and tutoring.

HOW MUCH DO I QUALIFY FOR? If you were a full-year Montana resident who paid your state taxes on 2020 and 2021 income on time, you should receive a rebate of up to $1,250 for your 2021 taxes. If you meet those requirements but paid less than $1,250 in 2021, you should have your entire payment refunded.

¶16-915, Education Credits--College Contributions The credit is equal to 10% of the contribution up to a maximum of $500 ( Note: This credit has been repealed after tax year 2021.). ( MCA 15-30-2326 ) For further details of the credit, see the Corporate Income Tax Division.

Payments made directly to the lender, as well as those made to the employee, qualify. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year.

To claim AOTC, you must file a federal tax return, complete the Form 8863 and attach the completed form to your Form 1040 or Form 1040A. Use the information on the Form 1098-T Tuition Statement, received from the educational institution the student attended.