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Timing of Tuition & Fees Deduction for 2006/2007 ?

In Pub 970 it says that you can deduct Tuition & Fees paid in 2006 for an academic semester beginning the first three months of 2007. That's good, but do I have the option of counting tuition paid in 2006 for an academic semester beginning in 2007 *for* the 2007 tax year? I'm kind of stuck because if I had not paid tuition in 2006, I would have lost my 2007 classes. Logistically I could not wait until 2007 to pay tuition for 2007. For 2006, I will be way over the $4,000 limit. I believe the university will send me a 1098-T for everything paid in 2006 even if part of it was for education to start in 2007.

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Reply to
coldje
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No.

Be sure to check out the education credits described in Pub

970. Other than calculating Federal and state total tax both ways, you don't know whether the deduction or the credit is better for you.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

If it is paid in 2006, then you deduct it in 2006. If paid in 2007, it is deductible in 2007. Basic rule for cash-basis taxpayer.

Reply to
Herb Smith

No choice. You paid it in 2006, your deduction, if any, is for 2006.

Reply to
Arthur Kamlet

No. You may only take a deduction in the tax year in which you actually make the payment. If you paid more than the maximum allowable deduction, the excess is not deductible. Are you eligible (MAGI not too high) for the Lifetime Learning Credit or possibly the Hope Scholarship Credit? If yes, see if the credit provides a better answer.

Reply to
A.G. Kalman

No. As a cash-basis taxpayer, you can only take the deduction in the year that you actually paid the expense. Bob Sandler

Reply to
Bob Sandler

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