Write offs for education?

Question

I am a new student this year. All of my classes that I am taking are online. I could write off my cable bill right and along with any supplies I've bought like paper, ink and even my PC right?

Answer 1

No, not legally anyways. The only expenses (and this is probably the second most misinterpreted or blatantly disregarded section in a tax return) that you can deduct are books or supplies that you purchased FROM your school, which were REQUIRED as a condition of enrollment. In other words, if you need a book only to do the homework, you can't deduct it. If you need the book to get into the class, you can deduct it...assuming you buy this directly from your school. In this sense, no supplies, not even the internet connection can be deducted (because you can use a public library to access the internet free).

That being said...ultimately it is your return and you are responsible for it. If you take the deduction for your expenses and add them to your tuition, you most likely will not get caught. It's kind of like finding $500 on the street....legally you're supposed to report it but if you don't the odds of you getting caught are slim to none.

Now, also be sure you file for the correct credit. There are 2 options, the Hope Credit and the Lifetime Learning Credit. Here are a few differences:

The Hope credit gives you more credit for expenses, however the classes you take must be toward a degree and you can only take the credit for the first 2 years of post-secondary education (i.e. the school must consider you a freshman or sophomore).

The Lifetime Learning credit gives credit, but not as much as the Hope credit...it is limited by your income. The Lifetime learning credit can be used as many times as you want. You do not have to be going for a degree...the classes you take can simply just be for your profession or your own education.

Now, if you are taking a light load of classes, I would say use the LLC and save the Hope for when you load up.

Answer 2

The only way you could claim those is if your school charged you for those with your tuition bill (then you might qualify for an education credit or income offset). The primary education expenses that you may claim are expenses charged by your institution to attend your classes so that you can work towards a degree. I have never taken an online course, but I would venture to guess that you are buying those items from a store and not from your school, so you would NOT be able to get any tax breaks for those expenses.

The only tax break you could qualify for is tuition paid to the school in 2006 (if you paid after the new year, but were charged in 2006, then you have to use it on next year's taxes). Your school should send you a 1098 form telling you what qualifying expenses you paid.

You could possibly write them off as business expenses if they are never used for personal use, and you are a business owner. If this situation applies to you, then you should hire a CPA.

Answer 3

Nope, not correct. You can probably take a credit for part of your tuition and fees though. The Hope credit is good for the first two years of post-secondary education. After that, you can take the Lifetime Learning credit instead.

If you're a dependent, then you can't take the education credits, although if you're a dependent of your parents, they can take it.

Answer 4

The wish credit is basically sturdy for the first 2 years after severe college. Lifetime gaining understanding of credit is sturdy for a life-time. by asking the question, your ideal to the wish credit will be eliminated.