Application Fees = Income Tax Deduction?

[sacc]

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I was wondering if anyone knew whether all these application fees were tax deductable. I've got like >$1,500 in application fees not counting plane trips to interview, hotels, etc. I searched IRS's website and can't find anything that explicitly states that these costs can be deducted. Anyone know? Thanks in advance.

* By application fees I mean AMCAS, supplementals, etc.

 

[jlee9531]

if they were i dont think most of us would be complaining about them.

 

[woolie]

Nope, all part of the process. Some people (*ahem* like me) have about $5,000 in fees and aplications, travel, etc.

This year I have been so poor that my deductions were more than my income - so at least I have gotten all of my taxes back.
🙂

 

[NE_Cornhusker1]

do a search. i talked to my dad [accountant] about this a while back and posted a while back.

 

[thewebthsp]

I don't think you can deduct anything if you're still a dependent (<24, and was a student for at least 5 mos.) drat! Well at least dad got a tax break.

 

[ewing]

Once you're a professional med student, you can deduct your AMSA dues too, since it's a professional organization. 🙂

 

[ms. a]

Originally posted by ewing
Once you're a professional med student, you can deduct your AMSA dues too, since it's a professional organization. 🙂

Seriously? You can deduct dues to professional organizations?

 

[drlexygoat]

I don't think they're tax-deductible either. Plus, you probably don't itemize your tax returns anyway, so it wouldn't help even if they were allowe.d

 

[missbonnie]

you can if you can prove it supports a business you own

 

[mpp]

Application fees, MCAT fees, and MCAT prep fees are not tax deductible regardless of your dependent status. In general, dues to professional organizations are tax deductible.

 

[darkcity998]

If you're employed full-time and you use your degree to further your status for your employer, then you can deduct "educational expenses"

You can only deduct educational expenses if you plan to work for the same employer after getting your degree.

 

[woolie]

Here's some consolation: when it's time to pay back loans, the interest is tax deductable, and then so are alot of your medical start-up costs. If you own your own home, and make regular IRA contributions (or self-employed retirement investments), as well as have a couple of kids or a non-working spouse, then the deductions start to look pretty good.

It all comes out in the wash and the money thing will work itself out.

 

[mickerbocker]

i wrote off my application fees as part of my lifetime-learning credit... which i think you can only do if you are filing as independent and noone else is claiming you as a dependent and writing off other tuition fees for your education (for instance, if you're still an undergrad... chances are your parents claim you as a dependent and can claim some sort of benefit for your tuition costs...) you only get about 20% of it back... and that's only if your income is below a certain amount... i think the form is 8863... hope and lifetime-learning credits... but it says that any tuition or associated fees necessary for matriculation at an institution qualifies...

 

[cytotech27]

mickerbocker-did you also deduct any mcat prep classes? my dad alluded that this could be considered education credit. I am doubtful because it was not given at a university, it was kaplan. I am filing independent and am getting hardly anyhthing back this year, I was counting on that refund to pay for app fees!!

 

[mickerbocker]

i also took kaplan but i decided not to deduct the cost of the class... i figured that i wouldn't push my luck because i was already including the tuition costs for a couple of post-bacc extension classes and i think i paid for the kaplan class in 2002 and not 2003... if its not too excessive you might be able to pull it off.... i finally decided not to include it though because a.) kaplan probably isn't considered one of the recognized institutions they allude to on the form... and b.) the class was optional and i didn't receive credit for it... so they probably won't acknowledge it... i'm really not qualified to give advice on this topic... but if you do claim it just make sure you have some sort of documentation to back it up...

 

[NE_Cornhusker1]

no

 

[mpp]

Originally posted by mickerbocker
i wrote off my application fees as part of my lifetime-learning credit... which i think you can only do if you are filing as independent and noone else is claiming you as a dependent and writing off other tuition fees for your education (for instance, if you're still an undergrad... chances are your parents claim you as a dependent and can claim some sort of benefit for your tuition costs...) you only get about 20% of it back... and that's only if your income is below a certain amount... i think the form is 8863... hope and lifetime-learning credits... but it says that any tuition or associated fees necessary for matriculation at an institution qualifies...

Sorry, but application expenses are not eligible for the lifetime learning credit. Fees and tuition associated with enrollment or attendance paid directly to the school are eligible. Not application expenses.

 

[rgporter]

Originally posted by mpp
Application fees, MCAT fees, and MCAT prep fees are not tax deductible regardless of your dependent status. In general, dues to professional organizations are tax deductible.

How about travel expenses? I don't see why travel expenses would be tax deductible for other professionals going to job interviews but not for med students.

 

[mickerbocker]

to quote form 8863 "qualified expenses are amounts paid in 2003 for tuition and fees required for the student's enrollment or attendance at an eligible educational institution..."

application fees are not listed under expenses that do not qualify...

it is a grey area... i recommend getting advice from someone you trust who knows tax laws... it is a debatable issue whether or not application fees are required for enrollment...

 

[duncanfj]

Travel expenses are not detuctible because you are not a professional going for an interview. You are a pre-professional going to an interview for school. That's like a senior in high school writing off travel expenses for visiting an undergrad institution.

 

[mpp]

Interview expenses for professionals are only for those seeking a different job in the same profession. Not for people seeking a job for a new profession.

The application fee (the fee you pay directly to the school, i.e., the secondary fee) is the only part of the application process that is eligible, but not application related expenses such as AMCAS, travel, etc. I would guess that the only fee that might be eligible is the one to the school at which you matriculate since the fees you paid to the other schools are not necessary for your enrollment at that one school.

 

[Suey]

How were you guys able to afford the entire amount of cost for the app process. Do you guys have wealthy parents who helped, take out loans, or what? I'm nervous that by the time I start applying, I won't have enough in my checkings/savings to cover it all. Any advice would help!

 

[ATPase]

If your parents can't help out and you don't happen to be independently wealthy... You can either try to open a low-interest credit card or take out a loan. I'm not sure what other options there are. I personally had to use a credit card and work an extra job, and I didn't even apply to that many schools. This process is extremely expensive.