Does anyone know whether U of London counts for education tax deduction? If I were taking the same program from a CA unaccredited school, it would count! Nosborne, JD (Who is too lazy to read the IRS Code)
I do not think either of the institutions you mentioned qualify for the Hope or the Lifetime Learning Credit (see IRS form 8863 on the IRS web site). You need to be attending an elegible educational institution defined as: "any accredited public, nonproffit, or proprietary (private) college, university, vocational school, or other posr secondary institution. Also the institution must be eligable to participate in a student aid program administered by the Dept of Education. Virtually all accredited institutions meet this definition."
Ian is right, with one small loop hole. Some of the schools outside the US are a part of the US financial aid system. These schools are trying to get students from all countries, and have found a loop hole to the system. I would check with the schools financial aid department. Usually if they can get US Federal funds, they would qualify as an instiution for a write off.
There was at one time a list of foreign schools approved for FFEL and other Title IV aid on the ed.gov website. It was available as an excel spreadsheet. ( When I had free time I converted it to a mySQL db and but it on my website). Alas, it is no longer there, at least not in an easily accessable format. If you are particularly interested in foreign schools you can call the OSFA foreign schools team at the Department of Education at 202-377-3168. I am of the impression that the Lifetime Learning Credit and the Hope Scholarship Credit base elegibility on 20 USCS § 1091 (2002) which explicity allows foreign study - provided it is study abroad approved by the institution at which the student is enrolled. Also 20 USCS § 1094 (2002) explains institutional eligibility and after a brief reading ( what a load of garbage actually - they must have an employee drug program, they must provide voter registration materials, and more nonsense) I see nothing that precludes foreign schools from participating. Given that Dept of Ed has an OSFA foreign schools team it only makes sense that foreign schools are eligible to participate in financial aid for US students if they so desire and meet the requirements. Further reading of the IRS code ( IRC Sec. 25A (f)(2)(A) ) specifically states that an 'eligible educational institution' means an institution: which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this section [enacted Aug. 5, 1997], and (B) which is eligible to participate in a program under title IV of such Act [20 USCS §§ 1070 et seq.]. 20 U.S.C. 1088, on my reading simply requires the program to be one that can lead to gainful employment and have a certain number of clock hours or credit hours depending upon at what what time a student enters the program (HS, AA). Franly quite reasonable so a degree in onanism would not qualify. Minimum competion rates for students in the program are also required. 20 USCS §§ 1070 is nonsense about the purpose of the federal program that provides the money. I even searched Lexis for IRS private letter rulings to see if anyone had recieved a ruling on the eligibility of foreign schools. I found none, even if I did they are applicable only to the issue at hand and not a blanket approval but the IRS tends to be consistent. However, schools - at least in the US- are required to file returns and provide students with 1098-T forms (for tuition paid). Foreign schools do not have to do that as far as I know. So, to make a long story longer, if a school is approved for financial aid, it seems to me that the credit would be allowed.
Does it matter that the program is taken, not to qualify for a new trade or profession but to maintain or improve my skills in my present profession? Nosborne JD
As I understand it - the business about maintaining and improving skills applies to the business expense deduction of schedule C. Unfortunately, such expenses only qualify if they exceed 2% of your AGI (as I recall the limit). The idea is this - if you are widget maker and you take courses in the widget making field (perhaps to become a DWM - doctor of widget making!) your expenses can be deducted as a business expense. If you are taking classes to become a concert pianist - and you aren't one now - you can't deduct them. Regards - Andy QUOTE]Originally posted by Nosborne Does it matter that the program is taken, not to qualify for a new trade or profession but to maintain or improve my skills in my present profession? Nosborne JD [/QUOTE]
The Lifetime Learning Credit can be used for any course that gives academic credit upto $1,000 in 2002.
Check out the tax publications 508 and 970, available from www.irs.gov Pub 508 details educational expenses related to work. For this deduction, the education must be to improve or maintain skills in your current profession, not to prepare you for a new profession. Pub 970 details other tax matters related to educational expenses, including the Hope and Lifelong Learning credits, as well as the NEW tuition and fees deduction. Education eligible for the new tuition and fees deduction does not have to meet the same requirements as for the deduction for work-related education. You can search for whether your school participates in federal student aid programs on the department of education website: http://www.fafsa.ed.gov/fotw0304/fslookup.htm To search for schools outside the USA, choose "Foreign Country" under "State." Various components of the University of London are included on the list. Alex
