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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 02-25-2012, 01:44 PM
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Default Education Expenses

My son is in college. He went to h and r block to get his taxes done. They said he can deduct his ipad that he purchsed for school use and also the taxes that he paid on his new truck. These don't seem right to me, Do you have anyone have info to give???
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Old 02-27-2012, 05:23 AM
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If the tax professionals said it's ok I would go with that.
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Old 02-27-2012, 06:03 AM
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I deducted my daughters' laptop and the taxes she paid on her car from her taxes. I use Turbo Tax and they asked the questions and I put in the answers
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Old 02-27-2012, 11:32 AM
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I think it depends on the type of credit you are taking. Under the American Opportunities Credit (or whatever it's called) I think you can deduct a computer if it's necessary for the class, but under the Lifetime Learning Credit it can only be deducted if it's purchased from the school.

I'm no tax expert, so you should definitely get a second opinion from someone who is. I don't necessarily trust the folks at H&R Block as tax experts.

As far as the taxes on the car I'm not sure about that one. Maybe it depends on whether he's a dependant of yours or not.
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Old 02-27-2012, 12:33 PM
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The AOC is a maximum of $2500 per year. The tuition/books we pay for far exceeds that, so her computer didn't even come into play as far as the credit.

If you have grants/scholarships, many classes have an online component these days making a computer a necessity. Two of my dd classes are completely online ~ times have sure changed since I was in college! LOL

As far as the sales taxes on his truck, you have to itemize deductions and take either sales tax OR state/local tax deduction. You can't take both. At the cost of vehicles these days, I'm sure the sales tax deduction was a better one for last year.
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Old 02-27-2012, 02:14 PM
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My husband starts college next month. Our C.P.A. already told us to keep any receipts for school materials, supplies and for the laptop he is purchasing. It is all tax deductible.

And yes, you can claim the tax you paid on a vehicle. We did that last year.
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Old 02-27-2012, 03:10 PM
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Quote:
Originally Posted by Unregistered View Post
My son is in college. He went to h and r block to get his taxes done. They said he can deduct his ipad that he purchsed for school use and also the taxes that he paid on his new truck. These don't seem right to me, Do you have anyone have info to give???
Here is a good Q & A page on vehicle expenses from the IRS

http://www.irs.gov/newsroom/article/...211310,00.html

From what I gather the vehicle must be new and not used. As far as your other question about college expenses I would search the IRS site for answers or call them directly and see if they can help you. Nothing like hearing it straight from the people who know best.
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Old 02-27-2012, 05:00 PM
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Originally Posted by Blackcat31 View Post
call them directly and see if they can help you. Nothing like hearing it straight from the people who know best.
I have to disagree with you on this - there was an organization that did an experiment (I can't remember who/what/where ) where they called the IRS "help line" with different questions from the very simple to somewhat complex, and the IRS agents got it wrong an alarmingly large percent of the time .
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Old 02-27-2012, 05:43 PM
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Default College Expenses

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Originally Posted by Unregistered View Post
My son is in college. He went to h and r block to get his taxes done. They said he can deduct his ipad that he purchsed for school use and also the taxes that he paid on his new truck. These don't seem right to me, Do you have anyone have info to give???
The Lifetime Learning Credit allows you to claim tuition and related expenses that include an ipad and "transportation", so it looks like you can claim his truck expenses, assuming he's using it to get to school.
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Old 02-28-2012, 07:42 AM
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I have to disagree with you on this - there was an organization that did an experiment (I can't remember who/what/where ) where they called the IRS "help line" with different questions from the very simple to somewhat complex, and the IRS agents got it wrong an alarmingly large percent of the time .
Wow! That is terrible...... I guess I would have thought they know best, but maybe not....
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Old 03-08-2012, 11:25 AM
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Wow! That is terrible...... I guess I would have thought they know best, but maybe not....
Yes, it is terrible. had it not been for Tom several years ago, I would have owed BIG MONEY to the IRS because I was audited and the auditor hadn't a clue about half of the stuff I claimed being legitimite expenses. Tom directed me to the literature neccessary to educate the foolish IRS auditor, otherwise I would have been up a creek without a paddle
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Old 03-08-2012, 11:44 AM
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A great way to save money for school is to rent textbooks. They are so expensive, and rarely does anyone use them when finished school. They devalue faster than auto-mobiles and new editions are always being released, with essentially only an updated cover and a higher price tag. Over the course of a university education one could save $1000s on books alone. Just my 2 cents.

Last edited by Blackcat31; 03-08-2012 at 12:07 PM.
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