federal tuition deduction?!


T

Tom

Taxcut notes that I will get no benefit from a tuition deduction (as my
deductions already well exceed my income) so it won't give me any.

Seems to me that it can't hurt to take it anyhow; in event of an audit it
seems prudent to take everything you can get in case they try to dissallow
something.

Is there any sense behind Taxcuts refusal?
 
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P

Paul Thomas, CPA

Tom said:
Taxcut notes that I will get no benefit from a tuition deduction (as my
deductions already well exceed my income) so it won't give me any.

Seems to me that it can't hurt to take it anyhow; in event of an audit it
seems prudent to take everything you can get in case they try to dissallow
something.



File the papers away with your return and if they audit you and discover
unreported income or they disallow some deductions, then you can whoop out
the paperwork and take the deduction.
 
P

Phil Marti

Tom said:
Taxcut notes that I will get no benefit from a tuition deduction (as my
deductions already well exceed my income) so it won't give me any.
Sounds kinda snippy to me. Who does it think is in charge?
Seems to me that it can't hurt to take it anyhow; in event of an audit it
seems prudent to take everything you can get in case they try to dissallow
something.
Not claiming it on your original return wouldn't stop you from claiming it
in an audit.
 
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D

D. Stussy

Tom said:
Taxcut notes that I will get no benefit from a tuition deduction (as my
deductions already well exceed my income) so it won't give me any.

Seems to me that it can't hurt to take it anyhow; in event of an audit it
seems prudent to take everything you can get in case they try to dissallow
something.

Is there any sense behind Taxcuts refusal?
Your software is being stupid. Granted that it won't reduce your tax (if
you're at zero already), but depending on what else there is, there could
be an NOL, and the deduction could affect the NOL computation (by wiping
out non-business income that would otherwise cancel the business loss). Do
you have an NOL?
 

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