Thursday, March 22, 2007

Education Expenses


What blessings to find your site! I have a question regarding deducting education costs. I returned to grad school recently (financed by student loans) while continuing to make my living as an indie yoga instructor and writer of web content on yoga and health. I've been getting Tuition Statements from my school and wonder how I'm suppose to use these to reduce my taxes? My studies are in Asian Philosophies and so absolutely related to my work.

Many thanks.

Hello Meg,

You can get a tax benefit from education expenses, however, there are several different ways to get the benefit -- from credits to actual deductions. Which is the most beneficial depends on your entire tax return -- all the income, expenses, exemptions, etc. And you need to be careful so that you don't accidentally take both benefits. Only one is allowed.

To explain how that works would be instruction in tax return preparation -- much too complicated for an email or post.

Education expenses are explained in depth in my book, Self-employed Tax Solutions, however, keep in mind that I think indies should not do their own returns. Your job is to have all the info and then take it to a competent tax pro who knows tax law and can get get you the lowest tax possible.


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