I am planning to take prep. course to become a CPA and I currently have a BA in accounting. I heard something that I can get 2000 back in tax credit per year for higher education. Does anyone know it from personal experience? Any more information is appreciated. Thank you. PS. I live in CA.
2007-03-15 08:59:23 · 5 answers · asked by Mariasha 1 in Business & Finance ➔ Taxes ➔ United States
If the CPA prep is not part of your curriculum at university you are not able to deduct it. It is considered a personal expense because you are trying to gain entry into a new field.
2007-03-15 09:06:15 · answer #1 · answered by R Worth 4 · 2⤊ 0⤋
Only courses that are for "an acedemic period" like a semester or quarter are qualifying expenses for the Lifetime Learning Credit or Hope credit. Since you already have a BA degree you wouldn't be eligible to take the Hope credit anyway.
The course must be taken from an eligible institution - one that is eligible to participate in a student loan program administered by the US Dept of Education.
So whether you can claim the Lifetime Learning credit depends on the course you're taking and where you're taking it - it would have to meet all the rules, which many test prep courses would not.
The $2000 for Lifetime Learning credit is the max, not a flat amount - the credit, if you're eligible for it at all, is 20% of the tuition and fees for the course or $2000, whichever is less. Only if eligible tuition and fees are $10,000 or over is the credit $2000.
2007-03-15 15:30:17 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
I am in your shoes right now. I have an MBA but most of my Accounting coursework has been lower level classes from a cc. I am currently taking Becker as a review class for FAR and I must tell you its brutal. I feel I am lacking significant knowledge to the point I am considering dropping for the meantime. I highly suggest intermediate level courses to ease yourself from the torture. It is a very difficult exam and the right preparation will make all the differece. Good luck.
2016-03-29 00:13:07 · answer #3 · answered by Sandra 4 · 0⤊ 0⤋
I haven't heard of such credit. I am aware that you can deduct your CPA prep course on your taxes. However, the exam fees are not deductible.
2007-03-15 09:05:05 · answer #4 · answered by magic13sf2003 2 · 0⤊ 3⤋
You probably heard about the hope credit and/or lifetime learning credit. You can look at Form 8863 and its instructions at www.irs.gov and see if you qualify.
You can receive both or one credit, but it's also (like everything else) dependent upon how much you earn.
2007-03-15 11:59:05 · answer #5 · answered by KillerKat 3 · 0⤊ 2⤋