Student Tax deductions??

Question

what are the things that I can claim on my taxes as a student..?? Can it be along the lines of books, supplies, gas etc.??

Answer 1

That depends on your educational situation. Tuition is usually a qualified education expense, and books & supplies are also qualified IF you are required to purchase them from your educational institution (as part of your program fees, for instance). Unfortunately, gas/transportation costs are never deductible as an educational expense.

There are several different tax benefits available; the Hope Credit can be claimed for qualified expenses during your first two years of higher education, and can be up to $1,650 (for 2006). The Lifetime Learning Credit gives a credit of 20% of up to $10,000 of qualified education expenses. The Tuition & Fee Deduction lowers your adjusted gross income by up to $4,000 of qualified expenses.

IRS Publication 970 (linked below) gives details on each of these benefits as well as who qualfiies, what expenses qualify, and how you can claim them on your tax return. Good luck! :-)

Answer 2

Tuition and fees. Gas, no. Books and supplies - probably not - you can only claim them if you are REQUIRED to buy them FROM THE SCHOOL as a condition of enrolling in or attending the course - buying them from the school bookstore doesn't count, you can only deduct them if they are basically part of the course fee.

There are also rules on the school you're attending, and on the courses you are taking, that are required to be met for you to deduct them.