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I used the education credit (Hope Lifetime) to offset all my income tax due last year, but I did not use the education credit in full. I also had some capital loss carryover ($552) and some capital losses that I mistakenly (I think?) applied in the return....could I just have used the rest of the education credit instead? ...and then kept the capital losses (carryover those losses ) for my 2005 return? Do I need to file an amended return for 2004?

any help would be greatly appreciated.

Welcome to Answerpool.

You can't use your educational credit in lieu of capital losses. They are different.

The lifetime learning credit is equal to 20 percent of the taxpayer's out-of-pocket expenses for qualified tuition and related expenses of all eligible family members, up to a maximum of $5,000. To qualify for this credit you must be either taking classes part-time to improve or upgrade your job skills.

More lifetime credit info

Capital gains and losses

You may have to ammend your Form 1040, Schedule D to straighten out your losses and gains. I'm not sure how to fix the credit you did not take. I suggest making an appointment with a professional tax preparer in your area. They are familiar with the current tax laws.

If you insist on doing your own taxes then I suggest you contact the toll free IRS assistance line.

1-800-829-1040 for individual tax questions

1-800-829-4933 for business tax questions