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Discussion Forum Index --> Tax Questions --> EDUCATION CREDIT
Kytaxpreparer (talk|edits) said:
| 15 March 2007
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| I almost know I saw this is a post awhile ago, but could not find it when I did a search. Someone asked about the lifetime credit, where they wanted to know if they could deduct the balance of their expense on form 2106 (sched A). IS it true, if the full amount of your education expense is not deducted under the lifetime credit, you can deduct the balance on Sched A? ie. education exp $5000, due to agi, etc. only $627 deducted from form 8863. so balance deducted as job related exp, schedule A?? (I know education exp. has to be related to job).
Thanks.
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Pegoo (talk|edits) said:
| 15 March 2007
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| No you only get one of the goodies.
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Kytaxpreparer (talk|edits) said:
| 15 March 2007
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| Thats what I thought, but wanted to make sure...cant find the prior posting relating to this...
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Hrbemp (talk|edits) said:
| 15 March 2007
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| The business that I work for prepares a return deducting MBA tuition. On many of these returns the tuition and fees adjustment is taken and the remainder is deducted on 2106. Sometimes breaking out the tuition in this manner helps to reduce or eliminate AMT.
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Deback (talk|edits) said:
| March 15, 2007
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| Without taking the time to research this, I believe the remainder not used for the lifetime tuition credit is deductible on 2106 or Sch A, if the tuition qualifies as education for current employment.
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Riley2 (talk|edits) said:
| 15 March 2007
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| Deback is correct. An educational expense for which a deduction is allowed (claimed) cannot be used for credit purposes. Sec. 25A(g)(5). However, the expenses may be allocated between the schedule A and the educational credit form.
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Pegoo (talk|edits) said:
| 15 March 2007
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| Whelp. Something new learned :P
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Kytaxpreparer (talk|edits) said:
| 15 March 2007
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| Now I have gotten confused :). So if out of $5000, only $600 allowed for lifetime, remaining balance of $4400 deductible on sched A??
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Deback (talk|edits) said:
| March 15, 2007
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| The amount on line 5c of Form 8863 is considered the amount used for the tuition credit, not the actual credit. Any balance above that amount goes on Sch A, subject to 2%.
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Deback (talk|edits) said:
| March 15, 2007
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| I think you would have $2,000 to enter on Sch A. (600 x 5 = 3000 used for lifetime credit)
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