tuition fees deduction


N

nosredna

My daughter was a full-time college student in 2003, took
2004 off to work, and is now back in school. During 2004, we
(her parents) paid an outstanding 2003 tuition bill of $2958
(qualified fees). From what I can see of the IRS rules,
there's no way of getting a credit for that money. (We
can't claim her as a dependent for 2003 because she made
over $3100 in 2004 and wasn't a full-time student.) If we
had paid it in 2003, she could have deducted it. This seems
totally unfair. Do any accountants out there know if there's
any way to claim that $2958?
 
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A

A.G. Kalman

nosredna said:
My daughter was a full-time college student in 2003, took
2004 off to work, and is now back in school. During 2004, we
(her parents) paid an outstanding 2003 tuition bill of $2958
(qualified fees). From what I can see of the IRS rules,
there's no way of getting a credit for that money. (We
can't claim her as a dependent for 2003 because she made
over $3100 in 2004 and wasn't a full-time student.) If we
had paid it in 2003, she could have deducted it. This seems
totally unfair. Do any accountants out there know if there's
any way to claim that $2958?
The tuition and fees deduction is unavailable in 2004 for
you and for your daughter as the law specifically states
that the expense must be connected to 2004 enrollment.

IRC Sec. 222(d)(3)(A) "(3) Limitation on taxable year of deduction
(A) In general
A deduction shall be allowed under subsection (a) for
qualified tuition and related expenses for any taxable year
only to the extent such expenses are in connection with
enrollment at an institution of higher education during the
taxable year."

There is an equivalent clause in that part of Sec. 25A that
refers to the Hope Scholarship Credit and the Lifetime
Learning Credit.
 

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