The IRS Deductions Blog

Posts Tagged ‘mba’

Question: Tax Deductions for Tuition and Student Loans Interest?

In the US, are BOTH the tuition and interest on the loans tax deductible?

Answer: You may be able to deduct qualified tuition and related expenses that you pay for yourself, your spouse, or a dependent, as a tuition and fees deduction. To determine whether your expenses are qualified, refer to Publication 970 (http://www.irs.gov/publications/p970/index.html) , Tax Benefits for Education. You do not have to itemize to take this deduction. You can claim qualified tuition and fees as either: (1) an adjustment to income, as directed above; or (2) a Hope or Lifetime Learning credit, or (3) if applicable, as business expenses.

You cannot take the tuition and fees deduction on your income tax return if your filling status is married filing separately, or if you are claimed as a dependent on someone else’s return. The deduction is reduced or eliminated if your modified adjusted gross income exceeds certain limits, based on your filing status. You cannot claim the tuition and fees deduction and a Hope or Lifetime Learning credit for the same student. If the educational expenses are also allowable as a business expense, the tuition and fees deduction may be claimed in conjunction with a business expense deduction, but the same expenses cannot be deducted twice.

You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance. The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.

Items on Amazon Right Now for Tax Deductible Tuition Expenses:

Almanac

MEETINGS

Assembly Democrats Commentary on Assembly Passage of the FY 2010 Budget (A-4100)

Question: under what law/provision in the IRS that states piano tuition,ballet,etc are Not Tax Deductible?

Answer: You are attempting to call piano lessons child care. Piano lessons fall under TUTORING and are not allowed. See last sentence below. You are not paying the piano teacher to watch your child, you are paying them to teach your child. The IRS makes a distinction between the two.

From the 2441 instructions:
Care of the Qualifying Person
Care includes the cost of services for the qualifying person’s well-being and protection. It does not include the cost of clothing or entertainment.

You can include the cost of care provided outside your home for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours a day in your home. If the care was provided by a dependent care center, the center must meet all applicable state and local regulations. A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit.

You can include amounts paid for items other than the care of your child (such as food and schooling) only if the items are incidental to the care of the child and cannot be separated from the total cost. But do not include the cost of schooling for a child in kindergarten or above. You can include the cost of a day camp, even if it specializes in a particular activity, such as soccer. But do not include any expenses for sending your child to an overnight camp, summer school, or a tutoring program.

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Not Just One Terrible Idea, But Two!

http://www.JewishWorldReview.com | It’s interesting that the Democrats are attempting to roll two of their highest priorities into one bill this month. The labyrinthine legislative legerdemain called health care reform now includes a reconciliation package that would fold in student loan reform.

Danielle Video: A Plea for assitance

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Signpost – 5 useful financial tips

With 2010 just beginning, many people, especially college students, request financial and tax advice to prepare them for new financial storms, tax breaks and particularly refunds.

“No Education”

Question: If I do file jointly for taxes, and my wife goes back to school (MBA), is it deductible?

Answer: Even better yet, they shouldn’t answer your question unless they are a tax professional.

The Lifetime Learning Tax Credit can be claimed for students in any year of study, which makes it appropriate for a lot of graduate students.

You can claim this credit for yourself, your spouse or your dependents. The credit is calculated by summing your tuition and related expenses, those of your spouse and those of all your dependents.

The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. The maximum amount of lifetime learning credit you can claim for 2005 is $2,000 (20% × $10,000). However, that amount may be reduced based on your modified adjusted gross income (MAGI).

Also, there is the Student Loan Interest deduction. if your modified adjusted gross income is less than $135,000 if filing a joint return, there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2005. The numbers arent in for 2006, but either it will be the same, or a little higher.

Items on Amazon Right Now for Mba Tax Deductible:

The National Association of Professional Women’s Local Chapter in Jacksonville Has Successful Chapter Meeting Kicking …

Chapter President, Karem Mieses welcomed all members and guests and reviewed the Chapters goals to foster friendships, serve as a resource for ideas and support in our professional and personal lives.