Tax question - tuition expense.

[TNDemo]

Last year I attended the spring semester of college and then started the fall semester. I dropped out halfway through it. I got my statement from the college and it only included the spring semester tuition. I paid it for the fall but did not complete the semester. I guess this is a long shot, but should I be able to claim the fall tuition? I know it won't match the college statement. Is there some kind of requirement that the semester must be finished? Or passed? I was passing, if that matters.

[alarimer]

1. I don't know

What I used to have to do (because the school's statement never actually showed the correct amount I paid) was to include copies of my tuition bills showing the amounts I actually paid during the calendar year.

[smtpgirl]

2. If you drop a class before the withdraw date, you should

have had a reimbursement for the class that you dropped.

If you received no money back from the school, this should have been included.


How does your school work with add/drop/withdraw/incomplete/incomplete with penalty work?

[alarimer]

7. I have never had to drop any classes

So I am not sure how it works.

[AllegroRondo]

3. From what I understand

the IRS doesnt care if you passed or dropped the class. You spent money towards education, and that is a deduction.

[Jeff In Milwaukee]

4. That is correct.

What you can deduct on your taxes is the amount you paid out of pocket for tuition. If that doesn't match what the university issues, I would claim the amount, provided I can produce cancelled checks etc. to back up my claim. And then get a corrected statement from the bursar.

[mtnester]

5. Gotta watch there...a 1098 form is issued to and filed with the IRS as well

for tuition paid. Even though you have the canceled checks, if you claim tuition credits, you have to attach the 1098 form the university issues to your form...and the dollar amounts need to match or you probably automatically trigger an audit. Books and such are another matter completely.

There (correct me if I am wrong) are still two types of tuition deductions. One is special and fixed for the first two years, and the other is a lifetime learning credit....both prorated based upon your income too as well.

Guess how much of it we were allowed to claim the last two years of our son's college degree when we still claimed his as a dependant?? Damn near zero. Did not work out either to try to shove the credit on him....bastards.

[Jeff In Milwaukee]

6. There's three...depending on how you count them...

Hope Credit for the first two years; Lifetime Learning Credit after that. But some people count these as two "versions" of the same credit.

Then there's the Tuition and Fees Deduction, which is on page one of the 1040 form. The phase out is higher than the Hope and Lifetime credits, so some upper-middle class tax payers use that. It's typically not as beneficial, but it beats nothing at all.

With regard to the 1099 for tuition, if you're paper filing, you can include a letter and a copy of your statement -- but I'd still get the college to issue a corrected version. If you're filing electronically, most programs have a "Preparer Note" or some such feature that lets you add additional information to the return. It's not perfect, but it's better than nothing.