Monday, July 2, 2012

Keep Receipts For An Educational Tax Deduction

Taxpayers are allowed to claim educational expense as tax deductions when filing their taxes. It might surprise you to know that you can deduct more than just tuition. To take the deductions, you must make sure that you keep all of your receipts. In the event of an audit, your tax receipts could save you.


Instructions


1. Confirm that the education expenses are actually tax deductible. If you're a full-time employee taking non-work related classes, they aren't tax-deductible. If you're going to college or you putting your children through college, you can take the educational tax deduction.


2. Keep track of related expenses. The school will send you a completed Form 1098T, which reports the amount of tuition you paid. However, it won't include any other expenses. Keep records of expenses such as books, supplies, activity fees and equipment, which are included as educational tax-deductible expenses.


3. Complete the itemized tax form when filing your taxes. Form 1040 EZ won't allow you to claim itemized tax deductions so make sure you use the correct form.


4. Go to the Internal Revenue Service website or call your accountant if you're not sure whether an expense is tax deductible.

Tags: make sure, when filing, your receipts