Tattoo school

[nwtaxlady]

Client paid $4000 to go "Tattoo School" to become a tattoo artist. The place is a tattoo saloon that provides tattooing & piercings etc. This place also is a school for tattooing and is registered with the State Department of Education. It is NOT accredited school.

So would she be able to take/use the $4000 expense for anything. After she completed the school she did become licensed in our State.

Any education credit that would apply to her? (I don't think so, but thought I would ask).

Now that she is "In Business" as a independent contractor and started in August and making money, would it qualify as start-up expenses?

I don't think she gets anything since she is now starting her new career. I thought I would check with you others incase I am over looking something here.

Thanks!!

[Lion]

How about Lifetime Learning Credit?

[Roland Slugg]

It is NOT accredited school.

One condition to both education credits is that the education must be taken at an "eligible educational institution," and the IRS instructions for F-8863 say (on p. 5) the following:

Eligible Educational Institution
An eligible educational institution is generally any accredited public, nonprofit, or proprietary (private) college, university,
vocational school, or other postsecondary institution. Also, the institution must be eligible to participate in a student aid program administered by the Department of Education. Virtually all accredited postsecondary institutions meet this definition.

Accordingly, the tattoo "saloon" described in your post would not qualify.

[Lion]

I read it too quickly as "an accredited school." No. No education credits or deductions, because NOT accredited. No employee nor self-employed expenses, because qualifying for a new career. Personal expense.

[BP.]

is a school for tattooing and is registered with the State Department of Education. It is NOT accredited school.

Even though this expense might very well end up not qualifying for an education credit (LLC- courses to acquire job skills), I don't know if there's enough information yet to definitively say.

You mention it is a school, and registered with the state DOE. It isn't "accreditation" that gives rise to education benefits, but whether the school participates in the DOE student aid program. I've been surprised by the kind of vocational training schools that have qualified, even though they aren't accredited. Sometimes a school website is helpful in determining eligibility.

[ATSMAN]

I am not doing any returns with AOC or LLC without a 1098-T! Some taxpayers who just took a course or 2 did not receive the 1098-T, but they can request a copy from the school. I have had 2 such students from our local community college. I also scan the copy of the 1098-T into my database and ask for additional documentation like a printout of the fees paid.

[Burke]

Me too. I never proceed without the print-out of expenses and payments. 1098-T is worthless except to document school info and 1/2 time student, etc.

[nwtaxlady]

I agree with Roland

I agree with Roland. Doesn't qualify for education credit. How about Start-up expenses on her new Schedule C? I know its a stretch! I don't think so because it is qualifying her for a new career. Someone told me to check into it to see if it would be considered "Start-Up expense" ?? Thought I would ask.