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Question about deduction

Hi, this is a two-part question.

First off, even if I take the standard deduction, are there some deductions I can still take even if i'm not itemizing? (moving expenses, medical expenses, job seeking expenses, tuition expenses, work-related expenses?). Or are all deductions restricted to those who itemize?

That said, I have an expense I'm not sure I can itemize. I am doing a specialty residency in dentistry (which is accredited by the ADA). The residency involves treating patients under my attendings, but it also involves taking several mandatory graduate courses at the university which is affiliated with our hospital. I am considered a full-time graduate student (according to boxes 8 & 9 on my 1098T), due to the fact that I'm taking these required courses. The tuition charged (Box 2) is $2,000, and this is offset by a $2,000 scholarship (box 5) -- essentially the school gives us a tuition waiver for the courses.

Now here's the kicker....... As I mentioned before, I also treat patients in the clinic as part of the residency. The residency program charges me a mandatory $3,000 instrument rental fee to be in the clinic. I notice in my tax software, it asks me if I had any educational expenses not accounted for in Box 2 of my 1098T. Can I say that I paid $3,000 for additional educational expenses? I should note that nowhere on my 1098T does it mention the additional $3,000 I paid for the rental fee, and I assume it's because the fee was not associated with the graduate courses I was taking.

Reply to
logan1453
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Yes to moving expenses (subject to a complicated 50 mile rule), NOT medical expenses, NOT job seeking expenses, yes to tuition credits and deductions although income limits apply, NOT work-related expenses. The ones with yes in the previous sentence are the deductions that occur on page 1 of 1040, and other common deductions are IRA (subject to complicated rules). The ones with NOT require itemized deductions, and it also includes charitable contributions.

However there a few special itemized deductions you can add to your standard deduction: You can add up to $500 or $1000 of your property tax to your standard deduction (I think this rule is for 2008 and 2009 only), and if you bought a car in a certain time region of 2009 then you can add the sales tax you paid to your standard deduction.

(1) Qualified tuition and related expenses (A) In general The term ?qualified tuition and related expenses? means tuition and fees required for the enrollment or attendance of? (i) the taxpayer, (ii) the taxpayer?s spouse, or (iii) any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151, at an eligible educational institution for courses of instruction of such individual at such institution. (B) Exception for education involving sports, etc. Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual?s degree program. (C) Exception for nonacademic fees Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual?s academic course of instruction.

So first, your university must be a qualified one. The fact that you received a 1098-T suggests that it is.

The $3000 fee sounds like a fee "required for the enrollment or attendance" and is not an exception noted in (C).

expenses are the same for the lifetime credit and tuition and fees deduction.

Anyway, the lifetime learning credit is non-refundable, which means that if you owe no tax you don't get anything back. If your credit is $600 and your total tax is $250, you only get $250 of the credit and the remaining $350 is lost.

Reply to
removeps-groups

All of those you cited are limited to those who itemize.

Schedule L permits only a $500 deduction for property taxes ($1k if married filing jointly), plus sales tax for a [qualified] vehicle purchase in addition to the standard deduction.

Tuition isn't deductible unless it's job related. There are education CREDITS which aren't deductions that may be available.

There are no deductions for the minimum qualifications of a job.

Reply to
D. Stussy

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