Tax Tips for Back to School

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Tax Tips For Back To School

The summer is winding down and students are beginning to prepare for their return to school. Understanding what is deductible and what is not deductible when it comes to education can be extremely helpful in the tax process. Below are some tax tips and reminders parents can keep in mind as they begin another school year.

The IRS does not allow deductions for school uniforms, even if required, for public or private schools. The cost of private school is also not deductible. This includes both traditional and parochial schools though exceptions may apply in some circumstances, such as special needs children and when it serves as child care.

On the other hand, the cost of private kindergarten – and some upper grades for students up to the age of 13 – may be deductible. If you can separate the educational costs of your program from any child care component, you may be able to deduct the child care piece. Expenses for before-or after-school care of a child in kindergarten or a higher grade may be deductible as long as the costs qualify. Generally, qualifying costs for child care are limited to the care for your own children under the age of 13, qualifying as your dependents, for care while you work or while you are looking for work.

When you contribute to band and sports fundraisers you must subtract the cost of goods received. The IRS requires you subtract the value of anything you receive in return for a charitable donation. A better solution is to just write a check directly to the school – the school gets to keep the entire amount and you take the full donation.

“You might be missing out on important tax advantages as your child begins another school year. Working with a tax professional, such as an enrolled agent, can help ensure you know what is deductible and what is not deductible when it comes to back to school. Visit www.maseaonline.org to find an enrolled agent in your area,” said INSERT YOUR NAME, member of the Mass. Society of Enrolled Agents.

Enrolled agents are America’s Tax Experts. Enrolled Agents hold the highest designation granted by the IRS and also have unlimited rights to represent taxpayers before the IRS. Consumers can easily locate a local EA by going to www.maseaonline.org. They can also call the Massachusetts Society of Enrolled Agents at 1.800.342.0031 for help finding professional tax specialists fully trained and licensed to handle their sensitive financial information.

INSERT SENTENCE OR TWO ABOUT YOU The Massachusetts Society of Enrolled Agents is an organization whose principal concern is the honest, intelligent and ethical representation of the financial position of taxpayers before government agencies. Members of MaSEA are also members of the National Association of Enrolled Agents and are required to complete a minimum of 30 hours of continuing professional education each year in the interpretation, application and administration of federal and state tax laws in order to maintain membership in the organization. This requirement surpasses the IRS required minimumof 24 hours per year.