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Posted by srock on January 19, 2007, 8:06 pm
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For medical school the MCAT is necessary. For Pharmacy
School the PCAT is necessary. Many other entrance exams
exist for various schools. Are the fees to take these exams
tax deductible?
The tax rules say:
(http://www.irs.gov/publications/p970/ch06.html#d0e6018)
Related expenses. Student-activity fees and expenses for
course-related books, supplies, and equipment are included
in qualified education expenses only if the fees and
expenses must be paid to the institution as a condition of
enrollment or attendance.
The line "paid to the institution" I believe to be the
killer. Harcourt is the company doing most of these tests
and they aren't the educational institution, so I don't
think those fees are tax deductible.
Anyone want to tell me I CAN take this tax deduction and
why?
Becuase of the "paid to the institution" remark I do feel
validated to take the application fees as deductions because
they are necessary for enrollment and they are paid to the
institution. Even though I will not attend each instituition
I apply, I plan to take the deductions for ALL application
fees since I have to pay the fee in order to attend the
institution.
Anyone want to tell me I CANNOT take this tax deduction and
why?
Thanks,
Sean
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<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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Posted by Bill Brown on January 22, 2007, 3:59 am
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srock wrote:
> Anyone want to tell me I CANNOT take this tax deduction and
> why?
You cannot take this tax deduction.
In general, education costs incurred to qualify you for a
new trade or business, like being an MD, are not deductible.
The only exception is certain specified costs (tuition and
fees) may make you eligible for a Lifetime Learning credit
or limited tuition deduction.
In other words, MCAT fees are not deductible because the
law doesn't make them deductible.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill Brown on January 22, 2007, 3:59 am
Please log in for more thread options Let me emphasize one point that I made in passing in my post
of a few minutes ago. Except for the limited Lifetime
Learning credit and tuition deduction you CANNOT deduct the
costs of education that qualify you for a new trade or
business. Becoming a doctor, pharmacist or lawyer is
becoming qualified for a new trade or business. Therefore,
your med school application fee is NOT deductible.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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