Savers credit.
1) Since May isn't a full month, does anybody know if that technically not count as a month leaving you at 4 months? 2) If one of your months during this time is a vacation month (no classes..so no credit hours to be full time), does that not count as a month?
You were a student if during any part of 5 calendar months of 2019
you:
• Were enrolled as a full-time student at a school; or
• Took a full-time, on-farm training course given by a school or a state,
county, or local government agency.
A school includes technical, trade, and mechanical schools. It
doesn’t include on-the-job training courses, correspondence schools, or
schools offering courses only through the Internet.
https://www.irs.gov/pub/irs-pdf/f8880.pdf
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- Student loan interest deduction you should pick one month, November or December likely to make a $2,500 payment on the interest your loan has accumulated so you qualify for the previously mentioned deduction.
Just downloaded my 1098-Es today and learned something interesting. I consolidated and switched servicers to FedLoan this year to participate in PSLF, and it appears that when you do that, the outstanding interest is counted as “paid” by the new servicer to the old servicer. So the 1098-E from my old servicer shows that something like $15,000 in interest was “paid.” So you still get the deduction even if you are avoiding the $2500 payment for a deduction because of PSLF.
That really seems like an error by your old servicer. I would have them amend it.Leave a comment:
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- Student loan interest deduction you should pick one month, November or December likely to make a $2,500 payment on the interest your loan has accumulated so you qualify for the previously mentioned deduction.
Just downloaded my 1098-Es today and learned something interesting. I consolidated and switched servicers to FedLoan this year to participate in PSLF, and it appears that when you do that, the outstanding interest is counted as "paid" by the new servicer to the old servicer. So the 1098-E from my old servicer shows that something like $15,000 in interest was "paid." So you still get the deduction even if you are avoiding the $2500 payment for a deduction because of PSLF.Leave a comment:
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As interns, you are still paying for post-secondary education? I guess I’m really clueless – I thought interns had already graduated medical school.
Med student graduate in May / June.
Internships / Residencies begin July 1, finish June 30.
So the first year out of med school, your annual salary is around 52k, but you only draw a salary starting in July. The residency might be anywhere from 3 to 7 years, usually, and you get annual raises of around 2-3k.
When you finish your residency or fellowship ( ie post residency training ) your salary will probably be in the high 50’s to low 60k. You then begin your real job in July or maybe August-September, at which point you will be earning your real salary, in the 200k and up range ( up to 1 million, apparently ).
Thanks, AlexxT - we rarely talk to the physicians until they are in their final year or 2 of training and I had completely overlooked how it would stack up in the beginning. So obvious now that you and WWillkie spelled it out!Leave a comment:
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Of course
ops: ! Then, if you're under the income limits, you should be ok.
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As interns, you are still paying for post-secondary education? I guess I’m really clueless – I thought interns had already graduated medical school
We made our last tuition payments in March 2018 and graduated in June 2018.Leave a comment:
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My spouse and I are both interns. Can we both take advantage of the lifetime learning credit and deduct a total of $4k on our 2019 return?
Possibly. Your AGI must be $110k or less to qualify for the full credit (20% of expenses up to $10k). The credit phases out at $130k. So, if your AGI is < $110k and you each have $10k in education expenses (total $20k) you can get the full $4k credit on your 2018 return, not 2019.
As interns, you are still paying for post-secondary education? I guess I’m really clueless – I thought interns had already graduated medical school.
Thanks for the reply - and yes, I did mean 2018 return, not 2019. My mistake!Leave a comment:
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As interns, you are still paying for post-secondary education? I guess I’m really clueless – I thought interns had already graduated medical school.
Med student graduate in May / June.
Internships / Residencies begin July 1, finish June 30.
So the first year out of med school, your annual salary is around 52k, but you only draw a salary starting in July. The residency might be anywhere from 3 to 7 years, usually, and you get annual raises of around 2-3k.
When you finish your residency or fellowship ( ie post residency training ) your salary will probably be in the high 50's to low 60k. You then begin your real job in July or maybe August-September, at which point you will be earning your real salary, in the 200k and up range ( up to 1 million, apparently ).Leave a comment:
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Savers Credit either 10%, 20% or 50% of your first $2000 invested in a Roth IRA is returned to you in credit form. That’s right you could make $200, $400 or even $1000 just by doing what you should do anyways, and invest in a Roth. The amount you get back is dependent on your taxable income (any even bigger reason to ensure you take your max deductions). Student loan interest payment deduction the first $2,500 of student loan interest is deductible. Make sure to make one $2,500 payment some point in the first half of intern year 2016 to lock in this deduction. Moving expenses deduction – Certain people may qualify to deduct moving expenses from their taxable income. Check form 3903 to see if you’re one of them.
Is it possible to amend your taxes from prior years to claim some of these credits? Particularly the moving and savings credit could be useful.Leave a comment:
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My spouse and I are both interns. Can we both take advantage of the lifetime learning credit and deduct a total of $4k on our 2019 return?
Possibly. Your AGI must be $110k or less to qualify for the full credit (20% of expenses up to $10k). The credit phases out at $130k. So, if your AGI is < $110k and you each have $10k in education expenses (total $20k) you can get the full $4k credit on your 2018 return, not 2019.
As interns, you are still paying for post-secondary education? I guess I'm really clueless - I thought interns had already graduated medical school.Leave a comment:
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My spouse and I are both interns. Can we both take advantage of the lifetime learning credit and deduct a total of $4k on our 2019 return?Leave a comment:
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Hello akwho, thanks for sharing your experience. Don't know who you are exactly but happy to hear that I was helpful. Best of luck with your training and with life!Leave a comment:
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Sure thing Johanna, unless I messed something up it looks roughly like this. Combination of things
Income: $51500 from dual resident salaries for half a year.
$3000 into residency 457 (no roth option at this point), roth is probably a better option, and I might open a roth IRA at vanguard before year’s end.
$5000 in a childcare FSA,
$3000 into a HSA (would do more but have very generous employer matching for almost 3k)
$4000 deduction for education expenses from 4th year medical school
$1000 approximately for moving expenses ( matched in a different city so moving for work)
Sum total of deductions: $16000
51500 – 16000 = 35500. Which should get us down below the 37000 cutoff to take full advantage of the 50% credit for contributions.
You probably already noticed this, but if the $3k that goes into a 457 is all yours, your spouse can also qualify for $1k credit by contributing $2k to an IRA or retirement account at work. If the $3k is split between you, you should each contribute another $500 to retirement to get the maximum credit.Leave a comment:
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