2004 Tax: Tuition and Fees Deduction

[mosbybranch]

Are there any tax experts in here? I was looking over the tax forms and was wondering: people who paid tuition fee at St. Regis/James Monroe, Ecole Supérieure are eligible for “tuition and fees deduction”??

[Robert J.]

Are there any tax experts in here? I was looking over the tax forms and was wondering: people who paid tuition fee at St. Regis/James Monroe, Ecole Supérieure are eligible for “tuition and fees deduction”??

I don't think so. You're talking about the either the Hope Scholarship or the Lifetime learning credits which have the same institutional eligibility.

Q4: What are the eligibility requirements for the institution?

A4: The college, university, vocational school, or other postsecondary educational institution where the student is enrolled must be an institution that is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) and, therefore, eligible to participate in the student aid programs administered by the Department of Education. This category includes virtually all accredited public, nonprofit, and proprietary postsecondary institutions. (The same eligibility requirements for institutions apply for the Lifetime Learning Credit, described in the next section.)


Which I don't have time to look it up, I'm pretty sure is just going to say a school accredited by the US Dept of Education when defining an institution. If one can find a "or foreign equivalent" in there, which I doubt in with regards to how federal laws are written, you might have an argument but then I would've want to prove the "foreign equivalent" for an SRU or Sorbon degree either.

[mosbybranch]

In the SCUPS catalog on page 92 regarding tax deductions for education expenses. It says: Current U.S. Treasury Regulations permit an income tax deduction for educational expenses (application fees, tuition, books and material, postage, phone, etc.) undertaken to maintain or improve skills required in one’s employment or other trade or business.

I guess they are talking about the Lifetime Learning Credits. Can someone seeking degree from non-accredited (SCUPS), DETC accredited schools (Ashworth), or foreign (James Monroe/Regis) claim Lifetime Learning Credits?

[Robert J.]

In the SCUPS catalog on page 92 regarding tax deductions for education expenses. It says: Current U.S. Treasury Regulations permit an income tax deduction for educational expenses (application fees, tuition, books and material, postage, phone, etc.) undertaken to maintain or improve skills required in one’s employment or other trade or business.

I guess they are talking about the Lifetime Learning Credits. Can someone seeking degree from non-accredited (SCUPS), DETC accredited schools (Ashworth), or foreign (James Monroe/Regis) claim Lifetime Learning Credits?


According to the IRS website, which refers to "qualifying institutions" again and again, what SCUPS has in the catalog may not be good advice.

http://www.irs.gov/individuals/article/0%2C%2Cid=96273%2C00.html


Lifetime Learning Credit Questions and Answers
----------------------------------------------------------------------

Q.3. What are the eligibility requirements for the institution?

A.3. They are the same requirements that apply for the Hope Scholarship Credit.




Which goes back to the definition in the higher education act in my previous post. You snuck in the Ashworth/DETC in your list which you know doesn't belong in the SCUPS and "Foreign"/SRU/Monroe/Sorbon category. Ashworth along with any DETC school has Chea/US Dept of Education approval.

[Robert J.]

SEC. 481. [20 U.S.C. 1088] DEFINITIONS.
(a) ACADEMIC AND AWARD YEAR.—(1) For the purpose of any
program under this title, the term ‘‘award year’’ shall be defined as
the period beginning July 1 and ending June 30 of the following
year.
(2) For the purpose of any program under this title, the term
‘‘academic year’’ shall require a minimum of 30 weeks of instructional
time, and, with respect to an undergraduate course of study,
shall require that during such minimum period of instructional
time a full-time student is expected to complete at least 24 semester
or trimester hours or 36 quarter hours at an institution that
measures program length in credit hours, or at least 900 clock
hours at an institution that measures program length in clock
hours. The Secretary may reduce such minimum of 30 weeks to not
less than 26 weeks for good cause, as determined by the Secretary
on a case-by-case basis, in the case of an institution of higher edu-
cation that provides a 2-year or 4-year program of instruction for
which the institution awards an associate or baccalaureate degree.
(b) ELIGIBLE PROGRAM.—(1) For purposes of this title, the term
‘‘eligible program’’ means a program of at least—
(A) 600 clock hours of instruction, 16 semester hours, or 24
quarter hours, offered during a minimum of 15 weeks, in the
case of a program that—
(i) provides a program of training to prepare students
for gainful employment in a recognized profession; and
(ii) admits students who have not completed the equivalent
of an associate degree; or
(B) 300 clock hours of instruction, 8 semester hours, or 12
hours, offered during a minimum of 10 weeks, in the case of—
(i) an undergraduate program that requires the equivalent
of an associate degree for admissions; or
(ii) a graduate or professional program.
(2)(A) A program is an eligible program for purposes of part B
of this title if it is a program of at least 300 clock hours of instruction,
but less than 600 clock hours of instruction, offered during a
minimum of 10 weeks, that—
(i) has a verified completion rate of at least 70 percent, as
determined in accordance with the regulations of the Secretary;
(ii) has a verified placement rate of at least 70 percent, as
determined in accordance with the regulations of the Secretary;
and
(iii) satisfies such further criteria as the Secretary may
prescribe by regulation.
(B) In the case of a program being determined eligible for the
first time under this paragraph, such determination shall be made
by the Secretary before such program is considered to have satisfied
the requirements of this paragraph.
(c) THIRD PARTY SERVICER.—For purposes of this title, the
term ‘‘third party servicer’’ means any individual, or any State, or
private, profit or nonprofit organization which enters into a contract
with—
(1) any eligible institution of higher education to administer,
through either manual or automated processing, any aspect
of such institution’s student assistance programs under
this title; or
(2) any guaranty agency, or any eligible lender, to administer,
through either manual or automated processing, any aspect
of such guaranty agency’s or lender’s student loan programs
under part B of this title, including originating, guaranteeing,
monitoring, processing, servicing, or collecting loans.

[Dennis Ruhl]

I know nothing of US tax law but there may be 2 different ways to deduct education.

In Canada a recognized program can be deduced as tuition expense. If one is self employed anything else can be deducted as a business expense if it is considered training.

Canadians cannot deduct tuition from American distance schools. I wonder what the North American Free Trade Act thinks of that? As I am not in the history business, so much for my history courses. My business courses are appropriate business expenses.