Taxpayer Interview and Tax Law Application
Here is how a volunteer helped Glenda deduct the tuition and fees she paid for a class.
| Volunteer Says: |
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Glenda Responds: |
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| Let's talk about your education-related expenses. Were you or someone else in your family going to school? |
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I took one class in the fall. |
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| You're filing as Head of Household and your income is below the limit for taking the full deduction. Do you have a receipt for the tuition payment? |
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Yes, these are the receipts from City College. |
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| I see $450 for tuition and $80 for books. Were you required to purchase the books through City College or could you have bought them elsewhere? |
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Those books were written specifically for the course; I had to purchase them through the school when I registered and they were an enrollment requirement in the course. |
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| OK, then we can include the books. That totals $530. I just need to ask a few more questions. Did you receive any funds from an educational assistance program from your employer? |
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Yes, the Educational Assistance Program provided $100. |
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| Did you make any tax-free withdrawals from a Coverdell educational savings account or another qualified tuition program, or from U.S. savings bonds? |
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No. |
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| Did you get any other nontaxable payments, not counting gifts, bequests, or inheritances, that were specifically for educational expenses? |
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Well, my mom gave me $100 to help with tuition. |
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| The $100 was a gift, so we don't count it. Your total payments were $530 and then we must subtract the $100 employer benefit. You can deduct $430 for tuition and fees. Do you have any questions about all this? |
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No, I'm really glad I can deduct that. |
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| There is also a credit for people who are paying for college expenses. You can take one or the other, but not both. When we get to the end of the return, I will ask you some more questions to figure out if the credit would be better for you than this deduction. |
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Okay, I'd appreciate that. |
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| Note on the intake and interview sheet that you have addressed this adjustment. |
