Main Street Tax Fulda

10/31/2026

Happy Halloween 🎃

10/22/2026

If you have college kids, be sure to bring their 1098-T tax form with to your tax appointment. Can usually be printed from kids college portal in January.

🎓 Paying for college? The IRS has a tax credit worth up to $2,500 a year for each student, and a lot of families never claim it.

It's called the American Opportunity Tax Credit, and it covers the first four years of college.

The math is simple. You get back every dollar of the first $2,000 you spend on tuition, required fees, and books, plus a quarter of the next $2,000. Spend $4,000 and you get the full $2,500, per student, per year. Two kids in college can mean up to $5,000 a year.

Up to $1,000 of it can come back as a refund even if you owe no income tax. That part matters for families with modest incomes.

The full credit is available with modified adjusted gross income up to $80,000 for a single filer, or $160,000 for a married couple filing jointly. Above that it shrinks, and it's gone at $90,000 single or $180,000 joint. Those limits haven't moved with inflation, so more families phase out every year. Married couples who file separately can't claim it at all.

The student has to be enrolled at least half-time toward a degree or credential and can't have a felony drug conviction. Room and board don't count, no matter how big that bill is.

Grandparents, this one's for you. If you pay a grandchild's tuition directly to the school, the IRS treats it as if the student paid it. The credit goes to whoever claims the student as a dependent, usually the parents. Your gift still helps them claim it.

One change is coming. Starting with 2026 returns, the person claiming the credit needs a Social Security number valid for work, and the student needs an SSN too.

To claim it, look for Form 1098-T from the school and file Form 8863 with your return.



P.S. Once a week, I email the best money article I read, with my take on this week's top Facebook posts and what's new on the Ways to Wealth blog. It's free, and you can sign up on the Ways to Wealth home page.

R.J. Weiss, CFP®

The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.

10/21/2026

Need a Notary? Another service, Main Street Tax Fulda offers.

10/19/2026

If you need assistance. We also offer this service.

Tax tip for property owners and managing agents!
Did you know you can already create 2026 CRPs? If your renters moved out earlier this year, you can make their CRPs now. https://www.revenue.state.mn.us/create-certificate-of-rent-paid

10/14/2026

Beginning in 2027, monthly Social Security benefits and SSI payments for 76 million Americans will increase by 3.6%. Get the details on our blog: https://ow.ly/hIGr50ZXyrh

10/06/2026

Need a copy of your tax records? Whether you're buying a home, applying for student financial aid or preparing for a major life event, the offers several options:

1. Use your individual account to view, print or download your transcripts and other tax records online
2. Request your transcripts and other tax records by mail

If you need your information quickly, start with your online account for convenient access. Learn more: www.irs.gov/transcripts

09/28/2026

🏡 Calling all Minnesota renters! If you paid rent in a property where the owner was assessed property tax, you could be eligible for a refundable renter’s credit! To learn more and check eligibility visit https://www.revenue.state.mn.us/renters-credit

09/25/2026

09/24/2026

Attention property owners and managing agents:
You can now create 2026 Certificates of Rent Paid (CRPs) for your renters! Visit Create a Certificate of Rent Paid (CRP) for more information. https://www.revenue.state.mn.us/create-certificate-of-rent-paid