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I may look into starting clases on Jan semester.
Is grad school tuition tax deductible?


If so, should I try to pay tuition before dec 31 ?
I Might goto school fulltime, so I may not have income for a few years after this. In that case, a deduction would be useless then, but I have lots of 2000 income I could offset? Wondering if I could prepay the whole enchilada before year end.

Also, any pointers on gradulate school eduction credit (Hope or Lifetime) on 1040 ? (but my income might be too high...not sure).

Im pretty sure my employer is allowed to pay for some tuition and then at some point it becomes a taxable event and needs to be added into year end w-2 after you hit a certain dolloar amount.

I currently derive all my income thru my S-corp, if that is relevant.

Could other potential factors that could be limition on deducting tuition be:
1. I'm a shareholder/officer
2. tuition classes not for Scorp business
3. no w-2 salary taken.
4. might need to set up plan (similiar to qualified pension plan)
5. I am a One-man S corp

Thanks a ton for any help on this matter!
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No. of Recommendations: 1
I may look into starting clases on Jan semester. Is grad school tuition tax deductible?

Sometimes. See IRS Publication 508 if your grad school is work-related. See Publication 970 for information about the Lifetime Learning Credit, which does apply to grad school expenses. (There's also information in there about prepaid expenses.)

Phil Marti
VITA Volunteer
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