Discussion:Lifetime learning credit or Sch A itemized
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Discussion Forum Index --> Tax Questions --> Lifetime learning credit or Sch A itemized
WIaccountant (talk|edits) said: | 26 March 2007 |
| I have a client who took a SAP course for business warehousing for his work. it cost him $1,600. I think this should be schedule A itemized but he thinks it is a lifetime learning credit. I know courses for job improvement qualify but I think it would have to be at an educational institution correct? Is there any other type of institution that would qualify you for a lifetime learning credit? Would just taking a training course/seminar be considered a deduction for lifetime learning credit? | |
| 26 March 2007 | |
| My understanding of the education credit is that it must be for higher education in pursuit of a degree and must be obtained from a qualified educational institution (defined in th Master Tax Guide as "any postsecondary educational institution eligible to participate in a student aid program admisistered by the Department of Education.") Your client sounds like employee CPE deductible on Sch A only. | |
| March 26, 2007 | |
| Sorry to disagree with you, AHH, but there is no requirement for "pursuit of a degree" for the Lifetime Learning Credit. It can be for a nondegree program taken to acquire or improve job skills. Classes must be taken at an "eligible educational institution." See Lasser, page 556. Page 555 lists the definition of an eligible educational institution--includes any accredited public, nonprofit, or proprietary college, university, vocational school, or other post-secondary institution eligible to participate in the student aid programs administered by the Department of Education. | |
| March 26, 2007 | |
| I would use the best method, Wlaccountant. Lifetime Learning Credit or Sch A. | |
| 26 March 2007 | |
| Code Sec 25A says pursuit of college or graduate degrees or vocational training. I did not interpret the original post as being anything other than an employee taking a "class" required by his employer. | |
| March 26, 2007 | |
| Pg 556 JK Lasser "In contrast to the HOPE credit the lifetime learning credit does not have a degree requirment or a workload requirement. | |
| March 26, 2007 | |
| AHH - Well, I don't know if Wlaccountant's client qualifies or not. It depends on if the client went to an eligible educational institution. The poster didn't specify where the class was taken, unless SAP was supposed to tell us. (I have no idea what SAP is at this time and don't have time to research it.)
And that's why I usually use Lasser or the IRS site and not the IRC or the Master Tax Guide to find answers. | |
| March 26, 2007 | |
| What I meant, AHH, is that I can find answers quicker if I don't use the IRC or the MTG, and I can understand Lasser and the IRS better. | |
| 26 March 2007 | |
| I don't know what SAP is either. I'm also not familiar w/ Lasser. What is it and why would it be better to rely upon than the Master Guide? | |
Inagpurwala (talk|edits) said: | 26 March 2007 |
| Deback: SAP is a ERP systems used in big corporations for Accounting/HR/and Inventory management (Data management).
I agree with Deback this training can be considered as Life Time Learning. It is for to improve your knowledge. Also it will give better tax benefit to the tax payer. IshaqInagpurwala 14:53, 26 March 2007 (CST) | |
| March 26, 2007 | |
| J.K. Lasser book that's published every year and available to buy in November. It's the thick, yellow book with navy blue and red on the cover. I buy it every year (from Amazon in November) and think it's about the best you can buy for the price. It's about $15 plus shipping from Amazon and saves me from having to drive around looking for it each year. Oh, it's much better than the Master Tax Guide. I have a client who works at Edward Jones, and she used to give me a MTG every year when she dropped off her stuff. I never used it, because it has no detail at all compared to the J.K. Lasser book.
I might have found what SAP is: Go here, but I'm not sure if it's the same SAP. Makes me want to go out and trim the plants, hedges, and trees...and get the lawn mower tuned up and mow the lawn. | |
| March 26, 2007 | |
| If the lifetime learning doesn't work with this client for some reason, maybe could just go with tution and fees deduction on line 35(1040) | |
| 26 March 2007 | |
| Thanks Deb for the Lasser info. I get the MTG free from Edward Jones too. Guess it goes back to that old saying "you get what you pay for"
And, I'll concede to the concensus of LTLC for the client in question here. | |
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