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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.
  1. Go to the
    Educate
     screen, in the
    Educate
     folder.
  2. Open the
    Eligible student information
     statement window. Enter information for all eligible students.
  3. Select one of the following codes from the
    Ed Exp Code
     fieldview for optimization.
    • Code 4
       - Optimize Hope (Am Oppty) Credit/Tuition and Fees Deduction
    • Code 5
       - Optimize Lifetime Learning Credit/Tuition and Fees Deduction
    note
    If you don't want to use the optimization tool, don't use a code.
  4. Select
    OK
     to save the information.
  5. Select
    Preview
     or
    Print
     to 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.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • Subject: Education

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