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jareducd
New Member

I'll be forming an education company and I'd like to set it up so that my students would be eligible for the education tax deduction for tuition. Can someone help me?

 
2 Replies
Hal_Al
Level 15

I'll be forming an education company and I'd like to set it up so that my students would be eligible for the education tax deduction for tuition. Can someone help me?

There is no longer an actual deduction for education expenses, but there are tax credits. An eligible educational institution, for education tax credits,  is a school offering higher education beyond high school. It is any college, university, trade school, or other post secondary educational institution eligible to participate in a student aid program run by the U.S. Department of Education.

This includes most accredited public, nonprofit and privately-owned–for-profit postsecondary institution.

Reference: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eligible-educational-ins...

 

For more info on making your school eligible, see https://ifap.ed.gov/fsahandbook/attachments/0910FSAHbkVol2Ch1School.pdf

Carl
Level 15

I'll be forming an education company and I'd like to set it up so that my students would be eligible for the education tax deduction for tuition. Can someone help me?

Understand that all higher education institutions (colleges, universities, vocational schools, etc.) are first and foremost, a business. They are in business to make a profit. In order for monies paid to that business to be tax deductible or eligible for any tax credits for those who pay that business, that business must be a "qualified" institution that appears on the IRS list of qualified institutions maintained by the IRS. To see the definition of a qualified institution see https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eligible-educational-ins...

From that page you can also access the the U.S. Federal Aid Code List of qualified institutions.  For guidance on becomming an eligible institution, start at https://ifap.ed.gov/fsahandbook/attachments/0910FSAHbkVol2Ch1School.pdf

Basically, you have to go through the U.S. Dept of Education to start the process. You will not complete the process in one tax year either. 

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