Is Any Portion of Tuition a Tax Write-Off?

[LittleScholars]

Prior to opening my daycare I was fairly close to finishing my masters in literacy birth-6th grade/child education. I'd like to start finishing that up. Is any portion of coursework related to this field a tax write-off?

Thank you!

[Blackcat31]

Originally Posted by LittleScholars

Prior to opening my daycare I was fairly close to finishing my masters in literacy birth-6th grade/child education. I'd like to start finishing that up. Is any portion of coursework related to this field a tax write-off?

Thank you!

http://tomcopelandblog.com/education-costs-deductible

[LittleScholars]

Originally Posted by Blackcat31

http://tomcopelandblog.com/education-costs-deductible

Woo hoo!! Thank you!! This is awesome!

I really need to get in the habit of checking his website/blog. There is such great info on there!!

[daycarediva]

follow him on facebook too, he is amazing!

[LittleScholars]

Originally Posted by daycarediva

follow him on facebook too, he is amazing!

So smart! Done!

[LittleScholars]

Now that I'm finalizing my taxes, it is unclear whether I should be able to write off 100% of my qualified education expenses, or if only a portion of this can be written off.

However my accountant entered it, only something like $304 of $1056 was written off. Does that sounds correct? The article didn't speak to that (unless I missed it).

[LittleScholars]

Follow up: it seems the confusion is whether it can be written off an as education expense or in full. I'm inferring education expenses are just a fraction of the total? So confusing!

[TomCopeland]

Originally Posted by LittleScholars

Now that I'm finalizing my taxes, it is unclear whether I should be able to write off 100% of my qualified education expenses, or if only a portion of this can be written off.

However my accountant entered it, only something like $304 of $1056 was written off. Does that sounds correct? The article didn't speak to that (unless I missed it).

Assuming you are eligible to deduct your education expenses, you can deduct 100% of these expenses on your Schedule C. There are two federal tax credits: the Lifetime Learning Credit and the American Opportunity Credit. It may be that your tax person used one of these credits on your personal tax form (Form 1040) rather than claiming 100% of them as a business deduction. You don't want to claim these credits as you will get a bigger deduction as a business expense.

So is there a cap? If I am still paying on student loans from my bachelors and I get that right off, then also include what I am paying cash for to get a masters cert or degree related to childcare?

Just curious if there is a limit on what you can or should(red flags for IRS) include.

Just debating going back to school and if it is worth it. Thanks

[TomCopeland]

Originally Posted by Unregistered

So is there a cap? If I am still paying on student loans from my bachelors and I get that right off, then also include what I am paying cash for to get a masters cert or degree related to childcare?

Just curious if there is a limit on what you can or should(red flags for IRS) include.

Just debating going back to school and if it is worth it. Thanks

There are caps on the education tax credits. There are no caps on education expenses as a business deduction, assuming you qualify.

Thank you!