Okay, okay. It isn’t an ETHICAL dilemma as such. But here’s the entirely and purely theoretical question:
Let’s say that a person was filling out Form 8863, the Education Credit form attached to 1040. Now let’s say that this person went to a school last year that is state-accredited, but not a Title IV school. This person strongly suspects that such a school does not meet the IRS requirements for a Education Credit eligible school (i.e., you can’t take out federal loans at this school.) Is it better to
a.) not claim the money spent at this school, where the person worked harder than at any other school ever attended and learned more than she/he/it has ever learned anywhere else
or
b.) claim it, save almost $500, and hope the IRS doesn’t find out about the non-Title IV status of the school.
Actually, everything turned out okay without having to worry about this.
So here’s a REAL ethical dilemma!! The capital gains tax is so low compared to the way ordinary income is taxed… and it’ll be 0% in 2008… this can’t be a good thing… and yet… and yet… (squirms) this fact really saved my butt this year. What to do, how to feel…
Hmmm, I was about to say this entirely and purely theoretical person seems to be rather inclined to choice B anyway. (though I’d still like to hear how it turned out)
Actually, I (yes, stepping from beyond the veil of anonymity now that everything will be entirely aboveboard) found that the amount I spent at an indisputably Title IV school last year was enough to allow for saving the money anyway. So I didn’t need to worry about the other school. Form 8863 is really nice. Then, after doing the capital gains worksheet, everything worked out reasonably okay. And now I’m all done!
