Tuition deduction?


T

Tom Williams

My son is a 22 year old college student who qualifies as a
dependent (we continue to provide more than 1/2 of his
support and he lives in our home more than 1/2 of the year).
He is financing his education via Sallie Mae loans. The
institution has sent form 1098-T. Can his 2006 tuition
expenses paid with loan proceeds be a deduction on his or
our 1040 return?
 
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B

bono9763

Tom Williams said:
My son is a 22 year old college student who qualifies as a
dependent (we continue to provide more than 1/2 of his
support and he lives in our home more than 1/2 of the year).
He is financing his education via Sallie Mae loans. The
institution has sent form 1098-T. Can his 2006 tuition
expenses paid with loan proceeds be a deduction on his or
our 1040 return?
Yes, loan proceeds are considered income provided by the
signer of the loan, so you can still take education credits
or deductions. But if the student signed the loan and the
amount is large enough, this may affect the >50% of the
support you provided, as the loan proceeds are considered
support provided by the dependent.

Dennis
 
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B

Bill

(e-mail address removed) (Tom=A0Williams) posted:
My son is a 22 year old college student who
qualifies as a dependent (we continue to
provide more than 1/2 of his support and he
lives in our home more than 1/2 of the year).
=A0=A0He is financing his education via Sallie Mae
loans. The institution has sent form 1098-T.
Can his 2006 tuition expenses paid with loan
proceeds be a deduction on his or our 1040
return?
Yes. Source of funds is not a factor. If the money was
paid in the period in question for the purpose defined, then
it's a legitimate expense, for purposes of a tax credit or
allowable deduction.

Bill
 
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