Tuition & Fees Deduction

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  • arlo
    Senior Member
    • Feb 2008
    • 285

    #1

    Tuition & Fees Deduction

    I need some input. Client is self employed. Spent $1900 at a community College
    to complete a class on improving his job skills in heating business. AGI was $118,000 MFJ.The client received a notice that he had under reported some w-2 income but also IRS
    removed the Tuition and Fees Deduction. Can't understand why the deduction unless they just want to see the actual expense. Does anyone have an idea why?
  • Earl
    Senior Member
    • Mar 2006
    • 249

    #2
    How much was the under reported W2 income. Did he go over the $130,000 threshhold.

    Comment

    • arlo
      Senior Member
      • Feb 2008
      • 285

      #3
      Tuition & Fees

      Never mind. The IRS said on the notice that since there was not a 1099T they wanted to look at the actual expenses. Thank anyway.

      Comment

      • veritas
        Senior Member
        • Dec 2005
        • 3290

        #4
        Why

        did you not deduct the expense on Sch C?

        Comment

        • Burke
          Senior Member
          • Jan 2008
          • 7068

          #5
          I agree. Deduction could have been on Sche C.

          Comment

          • FEDUKE404
            Senior Member
            • May 2007
            • 3649

            #6
            More info is needed here

            So long as the "old" job and and "new" training are reasonably close in nature, I concur that going the Sch C deduction route is likely the most realistic approach.

            MAJOR caveat: The phrase "improving job skills" sounds, to me, very non-specific............details??

            Other issues (income/type of class/student status) etc could muddy up the waters for any education credits/deductions. The absence of a Form 1098-T also throws further cloudiness into the situation.

            FE

            Comment

            • Gary2
              Senior Member
              • Aug 2010
              • 2066

              #7
              Why is there no 1098-T? A community college is surely an eligible institution. Was it a high school level course? Does the client have a high school diploma or GED?

              Comment

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