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Hello,
First of all, I'd like to say that I did indeed use the search function to research this, but would like a more recent, in-depth conversation on this topic.
Are non-traditional applicants, as in individuals not claimed as a dependent by someone else, eligible to use application, MCAT, and prep course fees as an income tax write off?
Now, after reviewing the past posts and the few hits I got on google, the overwhelming answer is "no." However, the initial answer I came to on my own, is that these fees are indeed, deductible. Please tell me where the flaw in my argument is, if you find one.
First off, I'll be talking about the Lifetime Learning Credit. You can read about it at the IRS website: http://www.irs.gov/uac/Publication-970,-Tax-Benefits-for-Education-1
Second off, let's assume you are an eligible student for this credit. You may not be eligible. Check.
"For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a post-secondary degree program or taken by the student to acquire or improve job skills."
Okay, so I think it's safe to say that we're all going to medical school to acquire a job. The use of the word course might seem awkward, because we're applying to a professional program, but arguable, any course we take in medical school is directly related to acquiring the job/improving job skills.
What are certain related expenses?
"Student-activity fees and expenses for course-related books, supplies, and equipment are included
in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment
or attendance."
Yes, these fees are required. An easy way to think about this is that we cannot enroll/attend WITHOUT paying these fees. Therefore we know that they are indeed required to enroll/attend.
So, with that, I conclude that the application and test fees are indeed deductible.
Grey area: can we deduct fees from all applications, or only the one from the institution we end up attending?
I'm not sure here. I think we might be pushing our luck trying to write off all of the application fees. However, in the wording, it never directly states that the required fees we pay for enrollment/attendance at a qualified institution must be paid to that institution. Rather, it says that the fees must be paid to an eligible educational institution. In other words, we could be paying fees to one eligible institution, for enrollment/attendance at another. Loop hole, anyone?
Unfortunately, these arguments do not apply to prep courses, UNLESS they are taught by a Title IV institution. Perhaps a Princeton Review course would qualify, if they're part of Princeton University? Otherwise, you might try searching for a review course taught by an university. Has anyone found any?
Other stipulations:
-Capped at $2000
-Fees must occur in the year you're filing. I.E. if you took the MCAT the fall before you applied, you probably cannot write the cost of the test off.
And I think I just thought of a big issue: Do we pay AMCAS the application fees? Does the money then get paid to the institution? Hm...
First of all, I'd like to say that I did indeed use the search function to research this, but would like a more recent, in-depth conversation on this topic.
Are non-traditional applicants, as in individuals not claimed as a dependent by someone else, eligible to use application, MCAT, and prep course fees as an income tax write off?
Now, after reviewing the past posts and the few hits I got on google, the overwhelming answer is "no." However, the initial answer I came to on my own, is that these fees are indeed, deductible. Please tell me where the flaw in my argument is, if you find one.
First off, I'll be talking about the Lifetime Learning Credit. You can read about it at the IRS website: http://www.irs.gov/uac/Publication-970,-Tax-Benefits-for-Education-1
Second off, let's assume you are an eligible student for this credit. You may not be eligible. Check.
"For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a post-secondary degree program or taken by the student to acquire or improve job skills."
Okay, so I think it's safe to say that we're all going to medical school to acquire a job. The use of the word course might seem awkward, because we're applying to a professional program, but arguable, any course we take in medical school is directly related to acquiring the job/improving job skills.
What are certain related expenses?
"Student-activity fees and expenses for course-related books, supplies, and equipment are included
in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment
or attendance."
Yes, these fees are required. An easy way to think about this is that we cannot enroll/attend WITHOUT paying these fees. Therefore we know that they are indeed required to enroll/attend.
So, with that, I conclude that the application and test fees are indeed deductible.
Grey area: can we deduct fees from all applications, or only the one from the institution we end up attending?
I'm not sure here. I think we might be pushing our luck trying to write off all of the application fees. However, in the wording, it never directly states that the required fees we pay for enrollment/attendance at a qualified institution must be paid to that institution. Rather, it says that the fees must be paid to an eligible educational institution. In other words, we could be paying fees to one eligible institution, for enrollment/attendance at another. Loop hole, anyone?
Unfortunately, these arguments do not apply to prep courses, UNLESS they are taught by a Title IV institution. Perhaps a Princeton Review course would qualify, if they're part of Princeton University? Otherwise, you might try searching for a review course taught by an university. Has anyone found any?
Other stipulations:
-Capped at $2000
-Fees must occur in the year you're filing. I.E. if you took the MCAT the fall before you applied, you probably cannot write the cost of the test off.
And I think I just thought of a big issue: Do we pay AMCAS the application fees? Does the money then get paid to the institution? Hm...