In School? Use Form 8917 to Claim Your Tuition Deduction
In line with the basic underlying philosophy of the progressive income tax system, tax credits and deductions are used as an incentive to encourage behavior deemed productive to society. Not surprisingly, among these behaviors, getting a higher the minimum level of education is deemed an important goal, so there is the option of deducting school tuition and related educational expenses from your annual tax liability. To do this, you have to be able to document qualifying expenses and file them with the Internal Revenue Service (IRS) by means of Form 8917. This particular deduction can be applied for most all income tax rates: to yourself, your spouse, or your dependent, which makes it significantly different than some of the other education related tax vehicles available to clever financial planners.
In line with the timing used by the educational system, any annual filing takes into account the amount of time the student was in school in the previous year as well as the first three months of the current year. So, for example, if you were filing in April 2010, the period covered would be any unclaimed period of 2009 as well as the first three months of 2010. Qualifying expenses must not include any amounts received – directly or indirectly – from any other tax-free educational assistance program or plan. Further, the student has to be enrolled in a legitimate and qualifying educational institution, so a quick enrollment in a diploma mill will not make you eligible to claim the deduction.
In that this program is administered by the IRS, the exact rules relating who can claim the deduction and what expenses can be claimed are extremely detailed and you will be expected to be able to document any claim you make. For example, many important expenses related to education are specifically excluded, including: room and board, transportation, class related books, supplies and equipment, and so on. In general this particular deduction only relates to tuition and fees that are required for enrollment. Almost everything else is excluded, though there are other tax schemes that can help cover some of these other expenses.
In line with the timing used by the educational system, any annual filing takes into account the amount of time the student was in school in the previous year as well as the first three months of the current year. So, for example, if you were filing in April 2010, the period covered would be any unclaimed period of 2009 as well as the first three months of 2010. Qualifying expenses must not include any amounts received – directly or indirectly – from any other tax-free educational assistance program or plan. Further, the student has to be enrolled in a legitimate and qualifying educational institution, so a quick enrollment in a diploma mill will not make you eligible to claim the deduction.
In that this program is administered by the IRS, the exact rules relating who can claim the deduction and what expenses can be claimed are extremely detailed and you will be expected to be able to document any claim you make. For example, many important expenses related to education are specifically excluded, including: room and board, transportation, class related books, supplies and equipment, and so on. In general this particular deduction only relates to tuition and fees that are required for enrollment. Almost everything else is excluded, though there are other tax schemes that can help cover some of these other expenses.
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