posted
I'm using taxcut to do my deductions and I came across an option for "Education Expenses". My wife finished up her graduate education last year and I have a few questions about it.
I know that we can put her tuition costs in as a credit rather than a deduction, but that's not what I'm asking.
TaxCut has a line under Education for Transportation/Travel costs. My wife was traveling a very considerably distance every day since where we lived was about 50 miles from her university and about 25 miles from where she student taught. The student-teaching location and university were 70 miles from each other.
Can we apply the miles she drove to/from home and school, to/from home and student-teaching, and to/from student-teaching and school at the typical rate of 48.5 cents/mile? If so.... we would be able to deduct a considerable amount of money, since her daily commute was, well...ridiculous.
I ask, because I know that the commute does NOT apply when talking about driving from one's job to one's place of employment.
Your help is much appreciated.
Posts: 1099 | Registered: Apr 2005
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Mrs. BC, at the beginning of 2007, had a degree in Education, but did not have a license or the graduate certificate necessary to get one. Her travel to school and to student teaching was necessary in order to become qualified to work in public schools. Her first degree did allow her to teach in private schools.
At the start of 2007, she was not employed by a public school, but was employed by the university she was attending (as a graduate assistant).
Posts: 1099 | Registered: Apr 2005
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posted
Typically you can deduct miles from home to school, but the miles from school to the student-teaching location is probably not deductible. Mileage would probably be deducted on form 2106 as a continuing education expense. She cannot deduct these expenses as a business-related education expense.
quote:You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests. • The education is required by your employer or the law to keep your present salary, status, or job. • The education maintains or improves skills needed in your present work. However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: • Is needed to meet the minimum educational requirements of your present trade or business, or • Is part of a program of study that will qualify you for a new trade or business.
posted
Thanks for the quick reply. Right now it looks like it doesn't apply, since she did not meet the minimum requirements for her current employment....
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posted
Interesting, I never would have guessed that. Of course, I seldom meet anyone whose education is deductible in the first place.
Posts: 11017 | Registered: Apr 2003
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posted
BC: to clarify, she can deduct them as continuing education expenses. Just not as a business education expense-- two separate categories. Posts: 21182 | Registered: Sep 2004
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quote:Originally posted by ketchupqueen: BC: to clarify, she can deduct them as continuing education expenses. Just not as a business education expense-- two separate categories.
Which form/line entry do we use to add this? At the rate of $.485/mile, we would be able to deduct about $5000 of transportation expenses, which would easily bring us over the line into being able to use an itemized deduction.
Edit- nevermind. somehow I missed KQ's first response to this.
If we travelled to attend a conference for professional development purposes, is any un-reimbursed expense deductible?
Also, what about deductions for test costs? Mrs. BC was required to pay $190 to take a test to qualify to become a teacher. Is this deductible, and if so, as what?
Posts: 1099 | Registered: Apr 2005
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posted
Ack...more questions. KQ (and KPC...), I apologize in advance for taking undue advantage of your expertise!
My wife's chiropractor has prescribed massage therapy for her. Does this qualify as a medical expense since the chiropractor has prescribed it?
Additionally, we often travelled over 50 miles one way for medical appointments, since our PPO was in another town. I see that travel to/from medical appointments is deductible, but is such a high amount going to raise a red-flag in terms of an audit?
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quote:Originally posted by KetchupPrinceConsort: Typically you can deduct miles from home to school, but the miles from school to the student-teaching location is probably not deductible. Mileage would probably be deducted on form 2106 as a continuing education expense. She cannot deduct these expenses as a business-related education expense.
quote:You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests. • The education is required by your employer or the law to keep your present salary, status, or job. • The education maintains or improves skills needed in your present work. However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: • Is needed to meet the minimum educational requirements of your present trade or business, or • Is part of a program of study that will qualify you for a new trade or business.
Try as I might, I can't find anyplace on this form (or in the 'interview' in TaxCut) that has continuing education expenses. All I see are business-related education expenses.
Posts: 1099 | Registered: Apr 2005
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posted
(This is KPC posting under kq's login because she's a computer hog.)
You'll need to attach a form 2106.
On form 2106, pg 2, starting with line 11, it asks questions on your vehicle, miles, etc...Also, at the top of the 2106 where it asks for occupation in which you incurred expenses, enter "Cont. Education Exp."
Also, as a tip, do not use round numbers when entering in your miles (i.e. using numbers ending in 0's or 5's), the IRS might just think you are estimating.
Posts: 21182 | Registered: Sep 2004
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Form 2106 is asking questions about vehicle use being required by an employer. How do we answer this, since she was attending class? To be specific:
"Was your use of this vehicle for your employer's convenience AND required as a condition of employment?"
Additionally, she was an employee of the university, but this is unrelated to her student teaching and coursework.
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quote:If we travelled to attend a conference for professional development purposes, is any un-reimbursed expense deductible?
Yes, your unreimbursed expenses can be deductible on a Form 2106.
quote:My wife's chiropractor has prescribed massage therapy for her. Does this qualify as a medical expense since the chiropractor has prescribed it?
Additionally, we often travelled over 50 miles one way for medical appointments, since our PPO was in another town. I see that travel to/from medical appointments is deductible, but is such a high amount going to raise a red-flag in terms of an audit?
Yes, it would qualify for a medical expense, but remember that it would have to be over and above 7.5% of your adjusted gross income. For example, if you made $100,000, anything over $7,500 would be deductible.
Medical miles is not as high of an audit area because it is simple enough to prove. If you were audited on that, they would ask you to reconstruct your miles if you do not have a miles log.
Posts: 137 | Registered: May 2005
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posted
7.5% may very well be possible when we combine our mileage, appointment costs, corrective lenses (those that aren't paid for by insurance or and FSA, that is), and insurance premiums to the mix. We need to finish the computations.
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posted
KPC said he will look into the other question and see how they typically do it at his firm, and if there's an alternate form you can use instead. He'll post tomorrow if he manages to get the info by then. Posts: 21182 | Registered: Sep 2004
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posted
Since she is a teacher, she can still use form 2106. Yes, the vehicle was required as a condition to employment.
Posts: 137 | Registered: May 2005
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quote:Originally posted by KetchupPrinceConsort: Since she is a teacher, she can still use form 2106. Yes, the vehicle was required as a condition to employment.
The miles I'm asking about are from before she got her teaching job. She was completing coursework and student teaching to receive a license to teach.
I'm also thrown by the phrase "for the employer's convenience". Is this something I should be worried about?
Posts: 1099 | Registered: Apr 2005
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posted
BC: from what I understand of what he tried to explain to me last night (and bear with me because I'm dense on this stuff) all the extra work she was doing can be considered continuing education for her STUDENT teaching even though she otherwise wouldn't qualify to take them. It's another of those "if you can make an argument..." areas. Her student teaching WAS paid, yes?
Posts: 21182 | Registered: Sep 2004
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posted
KPC wants me to let you know that that does indeed change things. Sorry, but she can't take the miles as an education expense-- fees, tuition, and in some cases books are pretty much the only deductions the IRS typically allows for education.
Posts: 21182 | Registered: Sep 2004
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quote:Originally posted by ketchupqueen: KPC wants me to let you know that that does indeed change things. Sorry, but she can't take the miles as an education expense-- fees, tuition, and in some cases books are pretty much the only deductions the IRS typically allows for education.
That's what I thought, but I wanted to see if it were possible. Thanks KQ and KPC for your help with all of this!
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