2006-12-16 20:58:16 · 4 answers · asked by David B 4 in Business & Finance ➔ Taxes ➔ United States
Both answers are true yet somewhat incomplete.
There are two education credits available - Lifetime Learning Credit and Hope Credit. There are specific requirements for each- the type of school and classes, number of hours, specifics of what's covered, filing status, gross income phased out etc. Consult IRS publication at http://www.irs.gov/individuals/article/0,,id=121452,00.html for requirements on education credits.
If you are attending school part time, you may be able to deduct education costs on Schedule A. First, you can only take advantage of this if your total itemize deductions exceeds the standard deduction (single person $3300) and the sum of job related misc deductions is greater than 2% of your Adjusted Gross Income (Line 37 of 1040) . Second, you must able to show that the education will help with your current job (not toward a new career). For more information about this deduction, go to http://www.irs.gov/pub/irs-pdf/i1040sa.pdf
Best wishes.
p.s. Skip, Tuition and fees deduction has not been renewed by the Congress. It is no longer available for this tax year.
2006-12-17 06:11:57 · answer #1 · answered by JQT 6 · 0⤊ 2⤋
JQT is incorrect about the LLC. There is no attendance requirement. You can do one course per year and still qualify. Nor do you have to be attending full-time to qualify for the Hope Credit. Half-time (as determined by the school) is sufficient.
Tuition expenses are not necessarily deductible on Schedule A. If you meet the conditions for Hope and LLC you may find it beneficial to take the deduction instead of the credit. This is above-the-line (page 1 of the 1040) and has no 2% floor.
If you do not qualify for any of the above, then itemizing is possible.
2006-12-18 00:41:33 · answer #2 · answered by skip 6 · 0⤊ 0⤋
Yes! You can receive one of two credits that are offered: The Hope credit and the Lifetime credit. With the Hope credit, you can fully deduct all of your expenses (up to $2000, I believe). Catch is, you have to be either a freshman or sophomore in college. With the Lifetime credit, you can only take a percentage of the expenses. The percentage depends on your income, so I can't tell you for sure how much. I would highly suggest getting a tax preparer to do your return for you to make sure you are getting the maximum you are eligible to receive.
2006-12-17 02:43:01 · answer #3 · answered by Fool in the Rain 6 · 2⤊ 0⤋
Maybe. If the tuition was to help you improve your knowledge at your current job, then it might be. Talk with your tax advisor.
2006-12-16 21:57:21 · answer #4 · answered by crazydave 7 · 1⤊ 0⤋