http://www.fool.com/taxes/2005/taxes050722.htm?ref=btpGet Smart About Education DeductionsBy Roy Lewis (TMF Taxes) July 22, 2005 Suppose you use your credit cards to pay for qualified education expenses. A few years later, with bills piling up and interest accumulating, you decide to dip into your IRA for an early distribution to pay off those expenses. Since the money's ultimately reimbursing your qualified education costs, can you avoid the usual tax penalty for tapping into your IRA before its time? Not according to a recent tax court case (Beckert v. Commissioner, T.C. Memo 2005-162 (7/5/05))...
This one wasn't a surprising decision. I still have difficulty understanding how books are not a qualified educational expense unless they are required to be purchased from the school.rad
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