Tax question - re tuition expenses. - Democratic Underground

TNDemo

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Tue Feb-02-10 02:14 PM
Original message

Tax question - re tuition expenses.

I am working on the deduction for my daughter's school costs. I have the tuition statement that states the qualified expenses. A couple of boxes below that it has the scholarship amount, which is almost as much. My question is if I can claim the full amount of qualified expenses or if I have to subtract out the scholarship amount? I don't think the scholarship is necessarily assigned to tuition or housing, just a general scholarship. Thoughts?

To those that will inevitably post to not ask here and to ask a professional - I will do that. Just looking for general opinions at this point.

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cyberswede

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Tue Feb-02-10 02:26 PM
Response to Original message

1. Subtract the scholarship amount.

I would think you should only deduct your actual expense. That's how it works with child care reimbursement expenses, and medical expenses (you can't deduct the amount that was paid by insurance, for example).

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sharp_stick

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Tue Feb-02-10 03:12 PM
Response to Original message

2. I would check on it before just deducting it

It's been awhile since I was in school and I can't remember what happened. If you're concerned work out the amount for each scenario and see how big a difference it makes. If it's a big one it may be worth a call to an accountant to see if you can get the extra write off.

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BadgerKid

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Tue Feb-02-10 03:22 PM
Response to Original message

3. Many years ago, at least, you could

subtract the amount of tuition and related expenses (books, supplies, fees, but not housing per se) from the scholarship amount ONLY. If there is was anything left over, you include that in your income and write the net scholarship left over on the dotted line to the left.

In any case, maybe this will help point you in a fruitful direction.

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sinkingfeeling

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Tue Feb-02-10 03:32 PM
Response to Original message

4. Go to the IRS publication website and get 970, "Tax Benefits for Education", page 51.

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TNDemo

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Tue Feb-02-10 04:28 PM
Response to Reply #4

5. Thank you.

The way I read it on page 51 is that since the scholarship is not specifically stated to cover tuition but can be used for whatever, then I don't have to deduct it. Which would be eggscellent...

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sinkingfeeling

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Tue Feb-02-10 04:57 PM
Response to Reply #5

6. Sorry, look at the 1st. paragraph on the top. You have to deduct the amount of the

scholarship before taking the deduction.

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TNDemo

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Tue Feb-02-10 05:43 PM
Response to Reply #6

7. The first paragraph in which column?

The first column says not to deduct scholarship provided by an employer (it's not). In the second column it says not to reduce qualified expenses by that amount if the student is claiming it as income, which she is not. ??

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sinkingfeeling

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Wed Feb-03-10 10:24 AM
Response to Reply #7

8. Top complete paragraph on the left, a continuation from the list begun on page 50 of

'What You Cannot do'.

Deduct qualified education expenses that have paid with tax-free educational assistance, such as a
scholarship, grant, or assistance provided by an em-ployer. See the following section on Adjustments to
Qualified Education Expenses.

Then see Example 1 in the right hand column on page 51.

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