Can I deduct costs of flight training, if required for my college degree? Costs not paid to the school because they did not offer aircraft rental, but required the rating

[cowilliams34]

My degree program required I obtain the flight training, but the school did not offer aircraft rental so I had to go externally to pay for flight costs. Can this be added to the additional education expenses section of books and materials REQUIRED to be purchased from the school?

[Vanessa A]

It depends. Where did you take the flight training? 

 Since this is an expense that did not lead to credits for your course, you would not be able to claim it for the American Opportunity Tax Credit.  

Depending on your degree, for the Lifetime Learning Credit only, these expenses may qualify if the course helps you acquire or improve job skills. However, you still would have had to taken the flight training lessons at an eligible educational institution   If you did not take them at an eligible educational institution, then no, these expenses would not be useable for any education tax credits. 

Can your parents claim you as a dependent?  If so, are they claiming you as a dependent?

If your parents are claiming you as a dependent on their return, then they are the ones who would enter your education expenses and claim the education credits.

Depending on your age, if you are under 24 and at least one of your parents are still alive, you would not be eligible for the refundable portion of the AOTC, even if they do not claim you as a dependent. 

"If you were under age 24 at the end of 2023 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, you can claim your allowed credit, figured in Part II, only as a nonrefundable credit to reduce your tax.

You don't qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you.

1. You were:

a. Under age 18 at the end of 2023, or

b. Age 18 at the end of 2023 and your earned income (defined later) was less than one-half of your support (defined later), or

c. Over age 18 and under age 24 at the end of 2023 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).

2.At least one of your parents was alive at the end of 2023.

3.You're not filing a joint return for 2023."  Instructions for form 8863

Tax Benefits for Education

[Hal_Al]

Q. Can this be added to the additional education expenses section of books and materials REQUIRED to be purchased from the school?

A. No Even though the school may have dictated where you took the training, that doesn't count as "required  to be purchased from the school". 

However, since it's a degree requirement, I do think it qualifies as "course materials not required to be purchased from the school". This means it does qualify for the American Opportunity Credit, but not the Lifetime Learning Credit (LLC)*.

*It the flight school, itself, was an "eligible institution" then the flight tuition would qualify for the LLC.

[cowilliams34]

Hello Vanessa,

Thank you for the reply. 

The flight training was for college credits associated with my degree. However the college, although it was an aviation program, did not have any flight training associated with it, so I had to go get those ratings on my own through a local airport. I did not pay the school for those hours, but I did get college credit hours. My parents (both alive) are not able to claim me as a dependent this year. I am 21. 

Does this change anything?

Thanks

[AmyC]

I believe you are saying:

1. Flight training was required for the college credit  - so that was a necessary expense. See Qualified Education Expenses - Internal Revenue Service
2. Your parents did not provide over half of your support  - so they can't claim you
3. You are questioning the refundable AOTC - if all 3 parts are true, you are disqualified from refundable AOTC but still qualify for the nonrefundable portion which reduces your tax liability.
   1. your earned income (defined later) was less than one-half of your support 
   2. At least one of your parents was alive at the end of 2023. 
   3. You're not filing a joint return for 2023.