My wife works at a private school which requires us to send our children there. Is tuition tax deductible?

Question

By contract our children must attend the private school system at which my wife teaches. Failure to do so would result in her dismissal. Can we claim the tuition as an employee business expense for income tax purposes?

Thanks1

Answer 1

The practice of a private school requiring employees to enroll their children in the school as a condition of employment is not an "ordinary" practice in education.

The fact that your children attend the school does not help your wife do her job. It may help the school in general to demonstrate that the employees support the school, or limit the pool of eligible employees to families with children attending the school, but it does not aid the employee in carrying out her work duties. Therefore, the tuition expense is not "necessary".

So, not deductible.

Answer 2

I would say no, secondary education tuition is not deductible as a business expense. I think you would have to show that it is ordinary and necessary in that ALL other private schools in your area required the same thing, and it would still be a tough argument to make to the Revenue Agent conducting the audit.

If you do decide to deduct the tuition be ready to pay a penalty and interest when you get audited by the IRS.

Answer 3

By definition the expense must be ordinary and necessary as an expense incurred for purposes of producing income. It is necessary in your case however it may not be considered ordinary. As a tax professional I would advise you that it can be viewed as a benefit for the child however there has not been a particular ruling against it so it can be argued in your favor. I suggest going to The IRS web page (www.IRS.gov) and reviewing Tax Topic 514 also Pub. 17 or Pub. 535.... The IRS is very good about putting out tons of information, but because there is so much info it may be hard to find.... basically if you feel it is ordinary and necessary as an expense, you can probably get away with it. Of course if you are audited on the matter you will have to back it up, like with a written statement from the employer saying it is a condition of employment.

Answer 4

No, sorry, secondary school tuition is never deductible. Only post-secondary school (college, university, and some technical schools) tuition is deductible.

Answer 5

In most cases If an employer requires some thinkingThe pay or give you a discount Ask other staff or check with the labour board or union

Answer 6

You really need to talk to a tax person, as I spoke to my husband who does taxes and he said the answer is sometimes yes and sometimes no.

Answer 7

Sounds reasonable.... but check with a tax accountant who is familiar with your local regulations.

Answer 8

No, its not deductable.

Answer 9

No you can't.

Answer 10

Claim It............