The IRS now requires tax return preparers to complete a due diligence checklist with all income tax returns that contain certain credits and deductions, with steep penalties for noncompliance. Your return qualifies for the following special credits/deductions; therefore, it is imperative you read and understand this entire document. YOUR RETURN WILL NOT BE FINALIZED UNTIL YOU ANSWER EACH QUESTION BELOW AND SIGN AND RETURN THIS DOCUMENT TO US.
AMERICAN OPPORTUNITY TAX CREDIT:
The American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. To be eligible for this credit, a student must meet ALL OF the following requirements:
Be pursuing a degree or other recognized education credential.
Be enrolled at least half time for at least one academic period beginning in the tax year.
Not have finished the first four years of higher education at the beginning of the tax year.
Not have claimed this credit or the former Hope credit for more than four tax years.
Not have a felony drug conviction at the end of the tax year.
Additionally, in order to claim this credit, the taxpayer, spouse, and the qualifying student must all have a valid taxpayer identification number issued or applied for on or before the due date of the tax return.
PLEASE ANSWER THE FOLLOWING QUESTIONS: