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Respondent determined a deficiency in petitioners’ Federal
income tax of $295 for the taxable year 2002.
The issue for decision is whether petitioners’ prepayment of
$3,611 of tuition in 2001 entitles them to a Lifetime Learning
Credit pursuant to section 25A in tax year 2002.
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. Petitioners resided in
York, Pennsylvania, on the date the petition was filed in this
case.
Background
During taxable year 2002, Ami Patel (Ms. Patel),
petitioners’ niece, lived with petitioners for the entire year.
Ms. Patel, whom petitioners claimed as a dependent, was a full-
time student at York College in York, Pennsylvania, during
taxable year 2002. In the year in issue, petitioners paid $3,750
in qualified education expenses to York College. Also, in the
taxable year 2001, petitioners paid $3,611 in qualified education
expenses to York College. The payment of $3,611 made on November
28, 2001, to York College represented prepaid tuition for the
spring semester of 2002.1 Petitioners prepaid the spring
1It is unclear from the record when the 2002 spring semester
began at York College. However, due to the fact that York
College measures the college year in semesters and not trimesters
nor quarters, we assume that the spring semester of 2002 began in
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