[Study Monk]

I spent $950 on the cpaexcel review course where college units are being offered. The college is accredited by the ACCSB, and I am enrolled in their spring semester as a student. The payment was made in 2013 to the review course. I am wondering if I should try to deduct the $950 as a qualified tuition deduction. It doesn’t look like I will be receiving a Form 1098-T from the college. I am not sure if these type of deductions require the related form from the college. I also can’t tell if the payment being submitted to the review course is an issue. Guidance will be much appreciated 🙂

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[san4596]

My local college is requiring students purchase Gliem for audit and tax classes. If required as a text book, I would say it can be included in your college expenses for the year that the class is being taken. However, I would check to make sure the college expense can be deducted the same year as the class, and not required to claim the year of purchase. Also, I only see you being able to deduct the sections required by the class. Do not deduct BEC and FAR expenses if not required reading material.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[san4596]

My local college is requiring students purchase Gliem for audit and tax classes. If required as a text book, I would say it can be included in your college expenses for the year that the class is being taken. However, I would check to make sure the college expense can be deducted the same year as the class, and not required to claim the year of purchase. Also, I only see you being able to deduct the sections required by the class. Do not deduct BEC and FAR expenses if not required reading material.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[CPA soon]

@StudyMonk If you were required by your employer to take that course in order to maintain your current job, you would have been able to deduct it, but since it is basically for you and will open doors to a new career or opportunities and not required by your employer, you cannot deduct it.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[CPA soon]

@StudyMonk If you were required by your employer to take that course in order to maintain your current job, you would have been able to deduct it, but since it is basically for you and will open doors to a new career or opportunities and not required by your employer, you cannot deduct it.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[JustWant 75]

I found this on the IRS website on qualified education expenses. I think since it has to be paid to the institution, it may not be eligible for a deduction. I could be wrong though. Is that below the line deduction?

Qualified Education Expenses

Generally, qualified education expenses are amounts you paid

in 2013 for tuition and fees required for the student’s enrollment

or attendance at an eligible educational institution. Required

fees include amounts for books, supplies, and equipment used

in a course of study if required to be paid to the institution as a

condition of enrollment or attendance. It does not matter

whether the expenses were paid in cash, by check, by credit

card, or with borrowed funds.

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[JustWant 75]

I found this on the IRS website on qualified education expenses. I think since it has to be paid to the institution, it may not be eligible for a deduction. I could be wrong though. Is that below the line deduction?

Qualified Education Expenses

Generally, qualified education expenses are amounts you paid

in 2013 for tuition and fees required for the student’s enrollment

or attendance at an eligible educational institution. Required

fees include amounts for books, supplies, and equipment used

in a course of study if required to be paid to the institution as a

condition of enrollment or attendance. It does not matter

whether the expenses were paid in cash, by check, by credit

card, or with borrowed funds.

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[h0wdyus]

If the material purchased is for a degree course, i.e the books purchased is being used as text book for a degree course. Only then is the material's cost deductible, otherwise it is not deductible.

In your case it seems it is not text for degree course, so it is not deductible. I also remember yager in his video emphasising the fact that any review course like MCAT ; LSAT and CPA review courses etc are never never deductible.

My 2 cents 🙂

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[h0wdyus]

If the material purchased is for a degree course, i.e the books purchased is being used as text book for a degree course. Only then is the material's cost deductible, otherwise it is not deductible.

In your case it seems it is not text for degree course, so it is not deductible. I also remember yager in his video emphasising the fact that any review course like MCAT ; LSAT and CPA review courses etc are never never deductible.

My 2 cents 🙂

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[John Tucker]

I would run this by your tax professional, also you want to refer to this reference: https://www.irs.gov/publications/p17/ch27.html#en_US_2013_publink1000173992

Are you currently working within the Accounting or Finance profession? If so, then yes it should fit under the “Education To Maintain or Improve Skills”, taken from the publication posted:

– If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. This could include refresher courses, courses on current developments, and academic or vocational courses.

– Example. You repair televisions, radios, and stereo systems for XYZ Store. To keep up with the latest changes, you take special courses in radio and stereo service. These courses maintain and improve skills required in your work.

Note, the publication does STATE Bar Exam and CPA Review courses won't usually qualify, but again, I would run this by your tax professional if you are already working within the Accounting or Finance profession.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[John Tucker]

I would run this by your tax professional, also you want to refer to this reference: https://www.irs.gov/publications/p17/ch27.html#en_US_2013_publink1000173992

Are you currently working within the Accounting or Finance profession? If so, then yes it should fit under the “Education To Maintain or Improve Skills”, taken from the publication posted:

– If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. This could include refresher courses, courses on current developments, and academic or vocational courses.

– Example. You repair televisions, radios, and stereo systems for XYZ Store. To keep up with the latest changes, you take special courses in radio and stereo service. These courses maintain and improve skills required in your work.

Note, the publication does STATE Bar Exam and CPA Review courses won't usually qualify, but again, I would run this by your tax professional if you are already working within the Accounting or Finance profession.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[Author]

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