1. Home
  2. Taxes General Forum
  3. NOL from Tuition Deduction?

NOL from Tuition Deduction?

An adult supporting herself from savings while attending graduate school full-time has negative AGI because the $4000 tuition and fees deduction exceeds her small amount of income. Is this a NOL? Total income from W-2 wages, interest, dividends, and a long-term capital gain is $2357. Subtracting the $4000 tuition and fees deduction produces AGI of -$1643. Subtracting the $4850 standard deduction produces -$6493 on

1040 line 40. Form 1045 Schedule A, if I am filling it out correctly, allows the -$6493 as a NOL. I cannot find any documentation that specifically discusses whether or not the tuition and fees deduction can produce a NOL. Bob Sandler

> > >
Reply to
Bob Sandler
Loading thread data ...

No. No business activity. Also, I don't see why the education would be deductible at all, based on what is given.

Reply to
D. Stussy

Try the tuition and fees deduction....

-- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062

formatting link

Reply to
David Woods, EA, ChFC, CLU

That doesn't lead to an NOL. The 2002-2005 deduction on the front of the 1040 is a non-business amount.

Reply to
D. Stussy

Which means what? The comment of yours about education being deductible not being deductible AT ALL was wrong. Taxpayer attends graduate school. Taxpayer deducts tuition fees. Any effect or lack thereof on an NOL is besides the point.

-- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062

formatting link

Reply to
David Woods, EA, ChFC, CLU

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.