Education Expenses

[S T]

I have a question, I have a t/p that had Education Expenses ( Spouse), qualifies under either Lifetime Learning Credit or Tuition and Fees Deduction. Already qualifed (degree) in her profession (under Sched C) but was needed to obtain the State Teaching Credential requirement in her field.

The total amount is $ 5,400 - can receive $4,000 on Tuition and Fees Deduction on Tax Return , this is closely connected Education with T/p Schedule C business, in that it also allows her to open "her" own classes, even if not connected with a School or University.

Can I deduct the additional $ 1,400 as Ed on her Schedule C - along with associated Education mileage.???? Or is this pushing the envelope too far?

Thanks for your thoughts,

Sandy

[appelman]

I would think you could.

You are not deducting the 4K anywhere other than as a tuition and fees deduction.

[S T]

Only the $4K as Tuition and Fees Deduction, is so far all I have, not being deducted anywhere else, so am left with the approx $ 1,400 and Ed mileage???

Possible Sched C , for the $ 1,400 and the Ed Mileage??

Sandy

[FEDUKE404]

Other issues

If the facts are as stated, the credit and leftovers to Sch C should fly. The older rules of not taking anything as an employee deduction if "required and/or qualifies you for new field" appear not to be an issue here.

However, if this person with a Sch C also happens to be involved with a related W2 job, then things might get a bit sticky. You would then have to figure out some kind of allocation between teaching job and teaching Sch C. Along similar lines, the mileage calculations could become more complicated, i.e. travel from "work" to "education site" and any related commuting travel considerations.

Good luck!

FE