Education Expense Optimization tool
important
The Education Expense Optimization tool is available only for tax years when the Hope Credit is available.
UltraTax CS has a powerful Education Expense Optimization tool. It figures out whether it's better for clients with education expenses to claim the tuition and fees deduction or the other education credits. This tool creates a detailed report. For each student, it shows how much tuition and fees deduction or education credit will be reported on the tax return. After previewing or printing the return, the optimized amounts transfer automatically to the tax return.
- Go to theEducatescreen, in theEducatefolder.
- Open theEligible student informationstatement window. Enter information for all eligible students.
- Select one of the following codes from theEd Exp Codefieldview for optimization.
- Code 4- Optimize Hope (Am Oppty) Credit/Tuition and Fees Deduction
- Code 5- Optimize Lifetime Learning Credit/Tuition and Fees Deduction
noteIf you don't want to use the optimization tool, don't use a code. - SelectOKto save the information.
- SelectPrevieworPrintto run the optimization process.
The system automatically performs the Education Expense Optimization when you preview or print the tax return. The
Enable Education expenses optimization during print
checkbox is available in the Setup
, 1040 Individual
, Federal
, then Other Return Options
tab. This checkbox is marked by default. You can also get to the tool by selecting Utilities
, then Education Expense Optimization
.note
You can use the Education Expense Optimization tool with or without state returns. By default, it includes state information.
