New Wrinkle

[Christian]

A client has come in and is working to become a clinical social worker. She has to be supervised while on the job for a number of hours and has paid a company some $2,000 plus at $75.00 dollars an hour at this point. There is no statement of tuition for this leaving me at a loss to determine if these expenses are in any way deductible. I have never encountered this before so appreciate any input if available. I would think the state would handle this.

[Sara EA]

How can this be tuition?  For education credits, money must be paid to an accredited educational institution eligible to participate in gov't student loan programs.  One can no longer deduct education expenses on Sch A and even if you could, they can't be for education leading to a new profession.

[mcb39]

Check out the rules for the Lifetime Learning Credit.  Kind of a gray area.

[Lee B]

1 hour ago, mcb39 said:

Check out the rules for the Lifetime Learning Credit.  Kind of a gray area.

 

"To claim the LLC, you must meet all three of the following:

You, your dependent or a third party pay qualified education expenses for higher education.

You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution.

The eligible student is yourself, your spouse or a dependent you listed on your tax return."

[Christian]

I used the word tuition for lack of a better descriptor. This is a private company sitting in with an individual working towards a job which here is a county or state position. I sent her back to inquire if anyone there knew of any tax benefit applicable to these payments. As noted I have never seen anything quite like this. I will wait to see if she comes back with anything. 

[Sara EA]

To clarify Lee's post:  "An eligible educational institution is a school offering higher education beyond high school. It is any college, university, trade school, or other post-secondary educational institution eligible to participate in a student aid program run by the U.S. Department of Education."  IRS Pub 970   No gray area here.