Can i deduct college deposit fees

[rpg1963ksg]

Paid $300 deposit fee to University in December of 2016 for Fall 2017 enrollment.  Is that $300 tax deductible for 2016 returns or 2017 returns?

[nyinyeb · Accepted solution]

Unfortunately, deposit fees  are not deductible-

[wcroth55]

Uh, WRONG!  A deposit against actual college tuition, for example, IS DEDUCTIBLE... within certain time limits.  The IRS clearly states that a deposit (for example) at the end of 2017 can be deducted in 2017 if it is for expenses that will occur in the 1st quarter of 2018.

[ChrisJohnDLS]

What if it does not apply to the first quarter of the next year? For example, I paid a $1200 deposit in December 2021 to begin a Doctoral program in January 2023.

[Hal_Al]

Q. What if it does not apply to the first quarter of the next year? For example, I paid a $1200 deposit in December 2021 to begin a Doctoral program in January 2023.

A.  That issue hasn't come up before. But I'd say even a liberal reading of the rules says you don't qualify.  The "deposit" will probably be applied to your bill in 2023 and you can claim it then.