I've been working a lot this spring and plan to work more during the summer to save up before the start of 1st year DO school this fall. Tuition is ~35K + books, supplies, etc. I'm not a dependent anymore. Anybody know how much of that is tax deductible? Thanks.
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Med school tax deduction
Started by bluecephas
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If you pay the interest on your loans each year that is tax deductible.
bluecephas said:
You can take the "lifetime learning credit", which is a $2000 tax credit (not a deduction) or you can deduct the cost of tuition to a maximum deduction of $4000 per year. You cannot use both for the same student , but a married couple could use both on the same return as only one student per return can use the lifetime learning credit. The credit counts as though you paid in $2000 in taxes so it is usually a better deal than the deduction.
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stoleyerscrubz said:
True, but probably no help. His income is in 2005 and I'm guessing interest would be paid once a year or 2006. Therefore, no income would be present to offset the deduction=no benefit. Now if you made $20K in the summer 2006, your fine. But that is a lot in 3 months.
If you can pay the interest twice a year, that would work too.
The Hope and Lifetime credits are your best bet. That or gain a spouse that works to offset the future deductions/credits. Otherwise, you get nothing during periods of no or little income.
This info will really be helpful for next year's tax return. Thanks a lot, guys.
