I made a $20,000 tuition payment in December 2007 (which pays for the Jan-May 2008 school year), can I take the $2,000 lifetime learning tax credit for the 2008 year? I've already paid $40,000 in tuition for 2007 thus maximizing my credit for this year.
by 
Anonymous
ANSWERS: 1
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Unfortunately, those expenses will not qualify for 2008. Timing is everything in taxes, and with very few exceptions across the board, an expense paid in one year cannot be taken in another. IRS considers individual taxpayers to be on a "cash basis" which means that generally, income is "cash in" and expenses are "cash out" and they are considered to occur when the cash is actually received or dispensed. Hopefully if you are enrolled in a fall 2008 semester you can obtain your full 2008 credit with the expenses for that tuition.
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