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Subject Author Date
Tuition deduction? Tom Williams 02-06-2007
|--> Re: Tuition deduction? bono9763@yahoo....02-07-2007
Posted by Tom Williams on February 6, 2007, 10:36 pm
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 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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Posted by bono9763@yahoo.com on February 7, 2007, 8:45 pm
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> 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

<< ======================================================= >>
<< 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. >>
<< ======================================================= >>

Posted by Bill on February 7, 2007, 8:45 pm
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tomwnd82@gmail.com (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

<< ======================================================= >>
<< 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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