Who can -
and who should
- take the
American Opportunity credit?
you have a child in college, you may be eligible to claim the
American Opportunity credit on your 2016 income tax return.
If, however, your income is too
high, you won't qualify for the credit - but your child might.
There's one potential downside:
If your dependent child claims the credit, you must forgo your
dependency exemption for him or her. And the child can't take
The maximum American Opportunity credit, per student, is
$2,500 per year for the first four years of postsecondary
education. It equals 100% of the first $2,000 of qualified
expenses, plus 25% of the next $2,000 of such expenses.
The ability to claim the American Opportunity credit begins to
phase out when modified adjusted gross income (MAGI) enters
the applicable phaseout range ($160,000–$180,000 for joint
filers, $80,000–$90,000 for other filers). It's completely
eliminated when MAGI exceeds the top of the range.
If your American Opportunity credit is partially or fully
phased out, it's a good idea to assess whether there'd be a
tax benefit for the family overall if your child claimed the
credit. As noted, this would come at the price of your having
to forgo your dependency exemption for the child. So it's
important to run the numbers.
Dependency exemptions are also subject to a phaseout, so you
might lose the benefit of your exemption regardless of whether
your child claims the credit. The 2016 adjusted gross income (AGI)
thresholds for the exemption phaseout are $259,400 (singles),
$285,350 (heads of households), $311,300 (married filing
jointly) and $155,650 (married filing separately).
If your exemption is fully phased out, there likely is no
downside to your child taking the credit. If your exemption
isn't fully phased out, compare the tax savings your child
would receive from the credit with the savings you'd receive
from the exemption to determine which break will provide the
greater overall savings for your family.
We can help you run the numbers and can provide more
information about qualifying for the American Opportunity
us. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,