DOCUMENTION FOR EDUCATION TAX BENEFITS

Parents, if your children are preparing to begin or return to college here is some good advice.

 

The US Tax Code currently provides several benefits to help pay for a college education.  You should save the following documentation and information as it is received and give it to your preparer next year at tax time –

 

(1)  All “Burser’s Statements” and other financial statements from the college that identifies charges and payments for all tuition and fees.  Sometimes a “hard copy” of these statements is not provided – but they are available to download and print from the student’s “account” online at the college website.  While you must give your tax pro any Form 1098-T you receive from the college – the college’s financial statements are usually more important, and provide more accurate and useful information, than the 1098-T (historically the Form 1098-T has been as useful as tits on a bull).

 

(2)  Receipts for all books and other required classroom materials purchased, regardless of where purchased.  If the student sells back used textbooks to the college or other book store be sure to make a note of the amounts received (this is NOT taxable income, but will reduce the amount of allowable expenses).

 

(3)  Receipts for any “off-campus” apartment or room rentals during the school year that are not paid to or through the college and included on college financial statements – for example if your son or daughter rents, alone or with other students, an apartment in town as an alternative to campus housing.  This expense may not provide a tax benefit – but it is important to have the information available just in case. 

 

FYI, the IRS website has a good “Tax Benefits for Education: Information Center” with, as the title suggests, explains the various tax benefits for education. 

 

TTFN