Tax deductions for a full time salaried worker AND full time college student?

Question

- I gross $38500/year
- Tuition is about $7000/semester including books and lab fees
- I drive to class 4 nights a week about 40 miles each way

Answer 1

If the college class are required to keep you current job or obtain a new job in the same field, you can deduct it as a business expense.

If it is not work related or is to obtain a new job in another field, you cannot deduct it as a business expense, but may be able to claim a credit or deduct up to $4000 in tuition in fees.

See Form 8863, Publication 970 and TeleTax topic 513.

Answer 2

If you own a home and pay a interest on a mortgage along with property tax you will most likely be able to itemize (schedule A) and receive more tax deductions than if you use the standard deduction.

As for a tuition credit you should be eligible for the Lifetime Learning Credit but the Maximum credit is $2,000. It is something but not really all that much considering how much is going out. As for mileage that does nothing for you.

Answer 3

Being a college student won't change the tax calculation on your $38,500, but you will be able to take an education credit for some of your tuition and fees, but except under very unusual circumstances, not books. The driving to class won't give you any deduction.

Answer 4

Either tuition and fees deduction (maximum deduction is $4,000) or Lifetime Learning Credit (maximum credit $2,000 per year). Both have income limits to get the credit, and lifetime learning credit is a non-refundable credit (you only get the credit if you have a tax liability to apply the credit against).