Personal Finance

Quick question about tuition credit amount on tax.. i have like 50k!!

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  • Apr 19th, 2022 5:53 pm
[OP]
Penalty Box
Dec 16, 2020
165 posts
208 upvotes

Quick question about tuition credit amount on tax.. i have like 50k!!

So i have like 50k tuition amount, does that mean i'll get back 50k eventually from working? I wasn't able to find a clear answer
xtreme to the maximum
5 replies
Jr. Member
Mar 12, 2006
194 posts
174 upvotes
It is a tax credit. You will get some percentage of your taxes deducted based on your income level, when you have a taxable income. You can transfer up to 5k of tuition credit, in the year it is earned to a parent, who is probably in a higher tax bracket.
[OP]
Penalty Box
Dec 16, 2020
165 posts
208 upvotes
vdimitrov wrote: It is a tax credit. You will get some percentage of your taxes deducted based on your income level, when you have a taxable income. You can transfer up to 5k of tuition credit, in the year it is earned to a parent, who is probably in a higher tax bracket.
Yes i know, but lets say i pay 5k in tax do i get 5k back from the credits? What i'm asking is that will i eventually get back 50k?
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Deal Addict
User avatar
Jan 15, 2017
1682 posts
1215 upvotes
xtremeguy wrote: Yes i know, but lets say i pay 5k in tax do i get 5k back from the credits? What i'm asking is that will i eventually get back 50k?
No. It's a credit, which means that if you look on the tax form you'll see that it's value is <bottom fed rate + bottom prov rate> x $50K, or about $10K.
[OP]
Penalty Box
Dec 16, 2020
165 posts
208 upvotes
taxrage wrote: No. It's a credit, which means that if you look on the tax form you'll see that it's value is <bottom fed rate + bottom prov rate> x $50K, or about $10K.
Ok thanks, damn thought i had like 50k.. so its more like 10k
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