Application expenses-- deductions on taxes?

[lyn2006]

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I've seen the commercials that job-finding expenses are deductible... so what about application expenses - fees, travelling, etc? Has anyone done this before?

 

[Hebrew Hammer]

Interesting idea....I like the possibilities. I'll check with my tax dude...

 

[Seona]

yup, that's what i was told -- med school app fees and other related expenses are tax deductible.

 

[lyn2006]

yup, that's what i was told -- med school app fees and other related expenses are tax deductible.

So, would you put it on schedule A for job expenses (for form 1040)?

 

[oneaat]

several other threads have reached the opposite conclusion - so move carefully on that one...

 

[dajimmers]

Law2Doc and others were pretty sure that, while job search costs are deductable, education costs are not.

Now, what I want to know is, if after my interview I go talk to Pizza Hut or something about a job, can I say I travelled to Philly for a job interview? Hmmmm, I should have done that...

 

[Hoberto]

This has been discussed several times. From what I have read on the irs.gov in no way supports deducting application expenses for school. This thread is one of the better threads about this topic.

Don't you think if we could deduct these costs we'd be hearing about it during the financial aid talks? Also, if we could deduct med school application costs we should be able to deduct undergrad application costs and graduate application costs, too.

 

[laboholic]

I was told my my tax guy that I could deduct either my tuition for 2006 or my application fees, but it was either one or the other.... then again, my tax dude is from back home in my small redneck town and I dont think he knows what he is doing.... maybe time to start doing my own taxes?

 

[2Sexy4MedSchool]

several other threads have reached the opposite conclusion - so move carefully on that one...

Application expenses are only deductible if you are getting (a) continuing education in your profession, e.g. you're already a doc and you're going to a conference, or (b) you are going to (med) school to enhance your profession. For example, let's say you had a law degree and taught at law school, but you wanted to go back and get a PhD, with every intention of continuing to teach law after you completed the doctorate. That would be deductible. Since most med students are either starting a profession or changing fields dramatically, it does us no good.

In other words, we are SOL.

However, if you would like to risk an IRS audit, including taxes, penalties and full-body cavity searches, feel free to give it a shot.

 

[lyn2006]

In other words, we are SOL.

However, if you would like to risk an IRS audit, including taxes, penalties and full-body cavity searches, feel free to give it a shot.

How disappointing. Although I kind of figured we would've heard about it... Oh well. We've all spent so much money anyways- what's the difference now on how much we get back from taxes?

 

[ghostchild]

Ah, even if you're not suppose to odds are nobody will ever catch it so go for it!

(Not legal binding or to be held responsible if you try it and indeed are caught and it is some violation.)

 

[Napoleon4000]

the above post was funny.

If you have any questions, really, call HR Block. You can have your taxes done by them and it doesn't cost much. Plus, you may get a big return. And as far as I know, application fees are not tax deductible.

 

[thegenius]

I tried running this by my CPA and he said nope. Same reason that was given earlier in this thread. I think it's basically impossible to write off any med school expense for anyone in any situation.

I even posited the possibility of getting an MD/MBA, and he said the MBA costs could be written off. But not the MD.

 

[star22]

I tried running this by my CPA and he said nope. Same reason that was given earlier in this thread. I think it's basically impossible to write off any med school expense for anyone in any situation.

I even posited the possibility of getting an MD/MBA, and he said the MBA costs could be written off. But not the MD.

I just went to www.irs.gov and there was a link to free tax prep and then I went to H&R Block Free (if you make less than 50K) and they asked a bunch of questions about job related expenses and travel that you weren't reimbursed for and I added all of my application and interview expenses there.

 

[ShyRem]

Ummm, star? They asked about *job* related expenses. Not *application* related expenses. I don't think applying to medical school qualifies as a job.

 

[TigerMedic]

I figured I would get the answer straight from the source, so I called the IRS yesterday and asked. The counselor on the phone was very nice and helpful, but said that application expenses are not qualified educational expenses under either of the education credits or the education deduction. The key she said is that you have to pay the fee, but it's not for enrolling -- the school can take the money and then not let you in, making it ineligible. She agreed that it was annoying and unfortunate, but thems the rules.

 

[prettymd05]

I just went to www.irs.gov and there was a link to free tax prep and then I went to H&R Block Free (if you make less than 50K) and they asked a bunch of questions about job related expenses and travel that you weren't reimbursed for and I added all of my application and interview expenses there.

Do all HR Blocks do it for free or was this only for a specific HR block? I called one of them and they never heard of this FREE thing. What should I be asking for?

Thanks!

--pretty

 

[n3ur05ur930n]

Do all HR Blocks do it for free or was this only for a specific HR block? I called one of them and they never heard of this FREE thing. What should I be asking for?

Thanks!

--pretty

You shouldn't be asking for anything. If you make less than $50,000 a year you are eligible for the IRS's "Free File" program, which allows you to file your taxes *online* for free. You can find a list of qualifications and providers of the Free File Service on the IRS website at:

http://www.irs.gov/efile/article/0,,id=118986,00.html

I recommend reading the fine print for each service. They vary as to additional costs for things such as State and Local tax returns. I have used both HR Block's Tax Cut and for the past two years, am using TurboTax Online (and dishing out the additional fee of $24.95 for the State Return).