Online Degrees and CLEP and DSST Exam Prep Discussion
Taxes - Deduction - Printable Version

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Taxes - Deduction - sdeserio - 03-03-2010

Does anyone know if i can deduct Clep Tests. I took 5 exams and it cost $85 dollars each (425). Can i also deduct Instantcert and books that i bought?

Thanks

Taxes - Deduction - operalady - 03-03-2010

Are you enrolled? Don't take my word for it but my accountant said I can't deduct until the year my students are enrolled.

Taxes - Deduction - bricabrac - 03-03-2010

sdeserio Wrote:Does anyone know if i can deduct Clep Tests. I took 5 exams and it cost $85 dollars each (425). Can i also deduct Instantcert and books that i bought?

Thanks

You should discuss this with your accountant. My accountant was able to use all of my education expenses-TESC, CLEP/DSST, Instacert, related books and supples qualified. For instacert I used the email acknowledgement (it notes recurring monthly charge). I also charge all educational expenses to one card so I have those statements for back up. Bear in mind if you make over a certain amount of money your education deduction is minuscule at best.

Taxes - Deduction - NAP - 03-03-2010

I have looked into this quite a bit recently. Here is what I found:

In 2009, I was not enrolled in school and was taking only CLEP and DSST exams towards my first degree (as an individual, not through employment). I have looked at 4 tax breaks and was unable to find one that fits my situation. There are more in-and-outs to each, but here are the requirements I looked at in Publication 17:

Hope Scholarship Tax Credit –

1. “Student must be enrolled at least half time for at least one academic period beginning during the tax year.”

2. “Tuition and required enrollment fees, including amounts required to be paid to the institution for course-related books, supplies, and equipment.”

(Plus, see this additional information http://www.degreeforum.net/excelsior-thomas-edison-charter-oak-specific/8054-hope-scholarship-tax-credit-2.html#post76552)

American Opportunity Tax Credit –

1. “Student must be enrolled at least half time for at least one academic period beginning during the tax year.”

2. “Tuition and required enrollment fees. Course-related books, supplies, and equipment do not need to be purchased from the institution in order to qualify.”

Lifetime Learning Tax Credit –

1. “Available for one or more courses”

2. “Tuition and required enrollment fees, including amounts required to be paid to the institution for course-related books, supplies, and equipment.”

Tuition and Fees Tax Deduction -

1. “A student enrolled at an eligible educational institution...”

2. “Tuition and fees required for enrollment or attendance...” and “Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance.”

If anyone has found a tax benefit for taking exams (fees and/or books) while not being enrolled, please let us know.

*bold added

Taxes - Deduction - jadechow - 03-03-2010

But couldn't you argue that Straighterline or Aleks meets the "paid to the institution requirement"? I mean technically they are "institutions". Just wondering.

Taxes - Deduction - TMW2010 - 03-03-2010

jadechow Wrote:But couldn't you argue that Straighterline or Aleks meets the "paid to the institution requirement"? I mean technically they are "institutions". Just wondering.

They're not educational institutions as recognized by the DoE. That's why you have to have credit for them transcribed through another party. (ACE or the Partner schools for Straighterline.)

Taxes - Deduction - jadechow - 03-04-2010

TMW2010 Wrote:They're not educational institutions as recognized by the DoE. That's why you have to have credit for them transcribed through another party. (ACE or the Partner schools for Straighterline.)

Oh, that makes perfect sense. What about the tuition I paid to TESC this year - even though I'm not taking a single "class" through them. Any chance my tax guy is gonna let me deduct that?

Taxes - Deduction - TMW2010 - 03-04-2010

jadechow Wrote:Oh, that makes perfect sense. What about the tuition I paid to TESC this year - even though I'm not taking a single "class" through them. Any chance my tax guy is gonna let me deduct that?

From NAP's post...
Quote:Tuition and Fees Tax Deduction -

1. “A student enrolled at an eligible educational institution...”

2. “Tuition and fees required for enrollment or attendance...” and “Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance.”


Taxes - Deduction - sdeserio - 03-07-2010

My Tax guy wants to know if CLEP participates in student aid program administered by the DOE?

Taxes - Deduction - TMW2010 - 03-07-2010

sdeserio Wrote:My Tax guy wants to know if CLEP participates in student aid program administered by the DOE?

Nope, it does not.