According to IRS section 42, people in the projects are not allowed to go to college. And here is my source. The only exception are dependents.
http://voices.yahoo.com/section-42-full-time-student-rule-4705147.html?cat=17
I'm not lying. It's all over the Internet and part of IRS law so don't tell me I'm lying.
Section 42: Full Time Student Rule
Mary Lewis
Mary Lewis, Yahoo! Contributor Network
Oct 23, 2009 "Share your voice on Yahoo! websites. Start Here."
More:
Tax Returns
Households
tweet
Print
FlagPost a comment
Section 42 tax credit apartments not only have a maximum income limit they also have a full time student rule. Basically, this rule states that all household members cannot be composed of all full time students unless they met an exception. This shouldn't be confused with discrimination. This rule pretty much is directed at those persons still on their parent's bill. While the student would income qualify it is solely due to their parents paying all of their expenses. Section 42 apartments are not designed to be student housing. They were created to provide quality housing for those household with a low to moderate income, not to be confused with Section 8 which is income based. The full time student rule does allow for exceptions to the rule.
Married filing a joint tax return or eligible to file a joint tax return is one exception to the full time student rule. Proper documentation includes either a copy of the prior year's tax return or a copy of the official marriage license. Please note that the decorative marriage license is insufficient and will not qualify as proper documentation.
A single parent with a dependant will qualify so long as either the applicant or the other parent of the dependant claims the child on their tax returns. Again prior year tax returns are needed if the applicant claims the dependant. If the other parent claims the child then you can ask the applicant if they will be able to get a copy of the other parent's return. If not, see if the other parent would be willing to sign a self affidavit stating they are claiming the child. Please note that if someone other than the parents claim the child on their tax returns the applicant will not be eligible for this exception.
Applicants who receive AFDC or TANF otherwise known as cash welfare payments will qualify. A recent printout from the state agency is sufficient. You will verify cash payments during the application process for their income certification. Many states have online access to view and print the documents you need.
Those who participate in a qualified JTPA program will also meet the exception to the full time student rule. Documentation from the program will be needed. Also get a copy of their mission statement if possible. Some states require it, some don't. It's good to have just in case.
This next one is a new this year and we don't have much direction as to what kind of document is needed. Applicants who were at any point in the past were under the care of a state foster agency will meet an exception to the full time student rule. This new exception does not really state how long they had to be in foster care. We can only assume that it could be as little as one day. I suggest that you have the applicant write a self affidavit stating that they were in foster care.
Lastly, if someone in the household is not a full time student then the household will qualify. Be aware that if the qualifying household member is a part time student, it must be verified with the institution. At no time can they go full time unless they meet one of the above exceptions. While Section 42 housing tries to cover all exceptions there are those who fall through the cracks. Perhaps with future progress we will see those cracks filled.

