It's 2017 Income Tax Time and I have a question

[Synicaal]

** Deleted Bad Information ** - Sorry Mis-spoke a bit.

[alzee]

The only thing you can use SL, Sophia, ect. towards on taxes is a straight deduction.

How so?

The only education related deductions that aren't related to student loans are:
- Tuition and Fees. Same restrictions as the tax credits -- only expenses paid to qualifying institutions are allowed.
- Qualified Education Expenses. Tuition, room & board (dorm), books, bus/subway passes, etc. Only valid if paid in order to attend a qualifying institution

I can find nothing about claiming SL courses (for example) in any fashion. Even Penn Foster courses can't be deducted, since they aren't a title IV school.

FWIW however, you *can* claim both credits and deductions, the rule is simply that you can't count any single expense twice. The exact wording from the IRS is :

You cannot claim the tuition and fees deduction as well as an education credit for the same expense

This means you can't claim e.g. the residency waiver as both, but you could claim the residency waiver as a credit, and the graduation fee as a deduction, if the limit for the credit was $2000.

[kalishakti]

Eligible taxpayers may qualify for up to $2,000 – $4,000 if a student in a Midwestern disaster area – per tax return.

What is a Midwestern disaster area? I assume an area recently impacted by tornadoes, floods etc...? Don't think they are referring to Rust Belt poverty.

[alzee]

What is a Midwestern disaster area? I assume an area recently impacted by tornadoes, floods etc...? Don't think they are referring to Rust Belt poverty.

Yes, it was for tornadoes and such during 2008. I think it was extended through 2009 but I'm not sure In any case, it no longer applies.

[alzee]

Here's a handy table showing the 3 programs and their differences:

https://www.eitc.irs.gov/Other-Refundabl...ucompchart

[Synicaal]

Here's a handy table showing the 3 programs and their differences:

https://www.eitc.irs.gov/Other-Refundabl...ucompchart

Great Find! I usually just use the IRS pups for my info

[alzee]

Great Find! I usually just use the IRS pups for my info

It's for/from 2014 but I don't think a lot has changed, anyone using it just needs to follow the correct year's instruction manual for the forms. Usually it's AGI limits or credit limits that change year to year, not the bigger picture stuff.

What do you mean 'pups'?

[sanantone]

The tax credit is only for courses taken at a Title IV school. In order to receive the maximum benefit the school must confirm on your 1098T attendance and if you were full time or part time. Unfortunately the ACE courses will not qualify.

Pell Grant users greatly benefit from this as they can take free courses and get money back when filing.

You can only get money back for costs that weren't covered by grants and scholarships. If you claim tuition and fees that weren't paid for by grants and scholarships, you're violating tax law. Online and software tax packages should automatically deduct the amount of grants and scholarships from the amount of tuition billed as long as you enter the information honestly. Tax preparers should already know to do this.

[icampy]

Does the above mean that you cannot use either of those towards your grad fees and whatnot if you did not use financial aid?

No financial aid myself, but was hoping I could do something with my residency waiver and all the fees for next year's taxes.

[sarg123]

Does the above mean that you cannot use either of those towards your grad fees and whatnot if you did not use financial aid?

No financial aid myself, but was hoping I could do something with my residency waiver and all the fees for next year's taxes.

I was wondering the same thing myself - has anyone had any experience of being able to deduct the $2000 residency waiver fee? That would be really nice if I could do that.