Now that it's back to school season, let's think about ways education can save you money on taxes...and a few ways it can't.
1. Private school tuition is not deductible on your individual tax return. If there's a daycare portion though, and you can split it out, that could be deductible for children up to 13 years old.
2. Clothing is not tax deductible. Sorry folks. Even if a particular uniform is required by the school.
3. Buying those football cards from the players for their fundraiser? The benefit received from use of the card likely exceeds the cost of the card. Not deductible.
4. Moving expenses are deductible, right? Nope. Not if moving your child to college.
5. Hopefully you've saved tuition money in a 529 plan as the earnings are not taxable but if you have to get a student loan, the interest paid is deductible up to a certain amount each year as long as your income isn't too high according to the IRS.
6. For the Education Credits & Deductions, typically tuition, required supplies & books count as eligible expenses. Not room and board, fuel for trips home, etc. Keep those receipts!
Other questions???? Give me a call.