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Anyone with experience doing this?

I heard you can deduct $4K/year on your federal return for education expenses.
A few questions:

1) If you exceed $4K for 2004, can you "carry-over" the expense to 2005 (like you can with capital losses)?

2) Do you calculate the amount you spent on education based on when you paid or when the paid expenses were used for (i.e. if you paid for educational expenses in Dec. 2004 for the Spring 2005 semester, does it count under tax year 2004 or 2005)?

3) Can you "split" the deduction between 2004/2005 tax years (given the situation presented in #2)?

Any links to IRS pages addressing this are highly appreciated!

This question is not directly applicable to me (it addresses a friend's situation), but I am just curious. Thanks!

- Illini2001
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Here's all the info from the IRS on Education expenses :
http://www.irs.gov/publications/p970/index.html

No carryover and the deductions are in the year they are paid. (It can sometimes make it worthwhile to pay a late fee to pay in a different year). Be sure to pass along the whole pub.

rad
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