![]() Student loan interest is still tax deductible.The education must enhance or improve skills related to your trade or business or must be required by law. However, if you are self-employed you may be able to deduct education expenses. Before this change, you may have benefitted from a deduction if the education was required by your employer or by law. Work-related education expenses were previously tax deductible, but this deduction is not available for employees from 2018-2025 due to changes to itemized deductions with tax reform.Prior to 2021, you could generally claim the tuition and related expenses deduction if you paid qualifying education expenses for higher education, paid the education expense for an eligible student, and the eligible student was you, your spouse, or your dependent. The deduction was 100% of qualified higher education expenses with a maximum of $4,000, $2,000, or $0, depending on the amount of your modified AGI and filing status. The phaseout for this deduction began at $65,000 ($130,000 for MFJ) for 2020. Such expenses must have been required for enrollment or attendance at an eligible educational institution. The tuition and fees deduction was an adjustment to income if you incurred qualified education expenses for you, your spouse, or your dependent. ![]() Tuition and fees are no longer tax deductible after 2020.You).Given the tax changes in recent years, it’s important to check which college expenses are tax deductible or allow you to take a credit and which expenses no longer qualify. Would be happy to help you (and as a paying customer, the call is free to Screen-share with your computer), please feel free to contact us. Questions, encounter any difficulties, or just want to speak with a live taxĮxpert who can walk you through your TurboTax entries (including the ability to Hopefully, you will find one of those methods workable for you, and this information helpful. In addition, here is a link to a short (less than one minute) video on this very topic, business use of a computer you may wish to watch it: The process for doing this is (roughly) outlined in the several screen-capture images found at the bottom of this text simply click the images to open. Here is the link to it (with all credit to the original contributor):Ī second viable option, which is given in this answer (and which is believed by this author to be more technically correct) is to enter the computer as an "Asset" not an "Expense," in the TurboTax software, and then elect the "de minimus expensing method" from within this section. ![]() You can choose office supplies, communications, or whatever, as your actual sub-category, since it really doesn't matter ( i.e., the tax outcome is the same). Simply substitute $2,500 for the expensing limits in that answer. One option is to follow the pathway laid out in this 2015 answer to a similar question, written by a TurboTax employee. The expensing "write-off" limit for 2016 is $2,500 (and most laptop computers cost less than that these days). In TurboTax Self-Employment, you can take this expensing route in one of two different ways. (Which, if you did, a computer traditinally has a depreciation "Class Life" of 5 years.) ![]() The IRS has recently (in the last few years) changed the rules for expensing and capitalizing assets for small businesses, so that you no longer have to capitalize and depreciate certain assets over a number of years. If the laptop computer is used for business at least 50% of the time, then yes, you can deduct it as a business expense. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |