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return and not their 2002 Federal tax return pursuant to section
25A(g)(4).
Discussion2
Respondent did not question Ms. Patel’s status as
petitioners’ dependent. Further, respondent conceded that both
payments were “qualified tuition and related expenses” and that
York College was an “eligible educational institution”.
Therefore, the only issue for us to consider is whether
petitioners’ prepayment of $3,611 of tuition in 2001 for the
spring 2002 semester entitles them to include this amount in
computing the Lifetime Learning Credit pursuant to section 25A
for taxable year 2002.
For eligible individuals, section 25A allows credits against
tax for qualified tuition and related expenses paid by the
taxpayer during the taxable year. Section 25A(c) specifically
provides, in pertinent part:
SEC. 25A(c) Lifetime Learning Credit.--
(1) Per taxpayer credit.-- The Lifetime Learning Credit
for any taxpayer for any taxable year is an amount equal to
20 percent of so much of the qualified tuition and related
expenses paid by the taxpayer during the taxable year (for
education furnished during any academic period beginning in
such taxable year) as does not exceed $10,000 ($5,000 in the
case of taxable years beginning before January 1, 2003).
2We decide the issues in this case without regard to the
burden of proof. Accordingly, we need not decide whether the
general rule of sec. 7491(a)(1) is applicable in this case. See
Higbee v. Commissioner, 116 T.C. 438 (2001).
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Last modified: May 25, 2011