Discussion:Deductions for educational expenses

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Discussion Forum Index --> Consumer Questions --> Deductions for educational expenses

Jpritting (talk|edits) said:

9 January 2006
How are deductions taken when school expenses are paid for by school loan and payments are deferred until end of schooling? I understand that once the student begins making payments on theloan , the interest is deductible, but what about when the payments are made to the institution while the student is in school? Can the student take advantage of the Hope or Lifetime Learning credit (or other educational deductions) when these payments are made?

MArdelean (talk|edits) said:

9 January 2006
Treat the tuition payments just as though they came out of the student's pocket. You might look at who would benefit most from the tax credits. The parents or the student. Some students have very little tax liabilty to work with.

DZCPA (talk|edits) said:

10 January 2006
Last year, credit went with the person claiming the dependent. It does not matter who pays the tuition, grandparents, parents, students, employer, etc. I think the rule is the same for 2005.

Taxladi (talk|edits) said:

1 January 2007
I have a client that has a 529 plan for his daughter. This is the first year of her college. What amount can we deduct as a college expense since this was a pre- paid plan?

Solomon (talk|edits) said:

1 January 2007
There is no deduction per se but if you are referring to one of the education credits, see Publication 970 Page 50.

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