Educational Expenses as a Tax Write-Off

Whoa, I just did my taxes and I’m amazed how much more money I’m getting back this year, as a result of my educational expenses. It’s a substantial chunk-of-change. There are advantages to being a career student!

Also, for the first time, I filed my taxes “online” through TurboTax. It was remarkably fast and accurate and the program quickly prompts the user to use all sorts of legal deductions.

 

WHOA, aren't you also getting tuition reimbursement from your department?

 

Not 100%.

My department will only reimburse us at the state-tuition level. I went to a private college, which is substantially more expensive per credit.

For example, the state-tuition for one credit cost $80, so the department will reimburse us for 75% for criminal justice courses and 50% for non-CJ courses (my undergraduate degree is not in CJ). My private college charges $175 per credit, but my department will only reimburse me at 50% of the state-tuition level, meaning I get back $40 for each non-CJ credit that I completed (with a grade of C or better). The remaining $135 (per credit) is not reimbursed.

Final Talley: My department will reimburse me $40 for each $175 that I spend. The remaining $135 can be claimed as a deduction.

Conclusion: After reviewing the above figures in my mind, I think I made a mistake in my taxes. Crap.

What are the chances of being audited?

 

Now I know why you need to remain anonymous.

 

ROFLMAO, anonymity comes in handy, doesn't it?

 

What are the chances? My experience has always been that the odds are much greater when you discover the error and sweat it out for months!

I also used Turbo Tax this year and I was pleased that it seemed to pick up all the weird parts of my life (such as the adoption tax credit). I filed it on line as well. Fast. Because I chose the direct deposit option, it should be in my bank account by the end of next week.

Tom Nixon

 

How did you like Turbo Tax, Tim? I'm shopping for tax software. Have you looked at others?

 

I have used Turbo Tax for 5 years now -- I swear by it. Filing on-line is easy, even if you owe money.

Bill Hurd

 

I don't think this is a deduction, but rather a credit. you can get up to $2000 back of the money that came out of your pocket for college.

With regard to the audit...It's your money until they take it. The code is so confusing that there are probably some IRS agents that would think you deserve more money. If they think you owe more, you can always pay them later.

 

It was easy to use and this year was cheaper than the alternatives because it also came with a $14.95 rebate for the electronic filing fee. Definitely recommended.




Tom Nixon