Flor Lizardi: This is clearly homework for a tax class.The only suggestion I'll make is that you compare and contrast your facts with Lois Singleton's successful tax court case. She was able to deduct her MBA tuition as a business expense. There were other tax court cases during the same year. A student who designed web sites on the side tried to claim the tuition for his computer science classes and wasn't happy with the court's decision....Show more
Jade Ohno: if the education has nothing to do with the business, of course notusing school expenses as a business expense it would have to have a business purpose, ie. the education would be used to improve the skills of the one the education was being paid for by the businessan S Corp is NOT your personal entity, it files an 1120S, entirely separate from a 1040if the S corp is no longer functioning, it would be wise to dissolve it officially...Show more
Charline Granes: This depends on a lot of circumstances ! and I recommend that you meet with a tax advisor.The general rule for deductibility of education expenses is that it must satisfy two tests:The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.The education maintains or improves skills needed in your present work.If these tests are met an employer can provide tuition reimbursement as a business expense and up to $5250 per year is excluded from gross income for the employee. However your situation does not appear to qualify. If you are no longer working for the S Corp, then you would not qualify.There are several individual credits available for higher education expenses. The American Opportunity Tax Credit allows up to $2500 deduction a year for up to four years and the Lifetime Learning Credit allows up to $2000 a year when you no longer qualify for the American Opportunity Credit. These are av! ailable for learning that qualifies you for a new trade or bus! iness. See http://www.irs.gov/uac/Tax-Benefits-for-Education:... and other listed resources for more information. Also remember you are best to contact a professional who will be able to evaluate your individual situation....Show more
Lawanna Livsey: You can NOT just decide to try and manipulate these things the way that you want to try and do on your 1040 income tax return because they do have rules that have to be met and you do have to meet in order to qualify to use any of your education expenses at this time in your life.Tax Benefits for Education: Information CenterTax credits, deductions and savings plans can help taxpayers with their expenses for higher education.http://www.irs.gov/uac/Tax-Benefits-for-Education:...Hope that you find the above enclosed information useful. 12/28/2012...Show more
Todd Stogner: "the individual was working as a sole employee/employer in the s corp, then he decided to return to school,"Did you close shop? If you ceased act! ivity in the corporation, then you cannot claim the tuition expense because the business was essentially closed during the time you were in school.In order for you to be able to claim the tuition as a business expense, the business has to be open and operating at 100% capacity. Working it on weekends is not enough to justify full-time tuition, even if you plan to resume after graduating.You can, if not a dependent, claim one of the education credits on your personal return....Show more
Houston Venezia: Perhaps if the major factor of your entire lessons used to be to coach you that, there'd be a main issue. Nonetheless, in view that most people don't take courses that require you to consider (they avert those like the plague) we are not able to relatively be amazed by results like that. Now, in case you had individuals getting physics degrees who couldn't calculate the pace of an object rolling down an inclined plane, or getting English levels who could not use proper! grammar, then there probably a problem. However saying 'scholars are s! tudying nothing because they could not tell me what 12 months Mao died' would now not be essentially the most logical conclusion....Show more
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