topic Are you a graduate student? in Get your taxes done using TurboTax

I worked until Sept (made 95k) and then became a full-time student. Should I buy a computer to reduce my taxable W2 2016 income? Or wait until 2017 (I'll earn much less)?

zoiesmith1975 — Sat, 01 Jun 2019 01:25:29 GMT

I worked until Sept (made 95k) and then moved to a new town and enrolled as a full-time student. It's Dec 31st tomorrow and the last day to take any take write-offs. Should I buy a computer to reduce my taxable W2 2016 income? Is that even possible? I don't have a schedule C this year.

My other option is to wait until 2017 when I'll be earning much less and would qualify for the Education Credit.

If I can deduct the computer of my taxable 2016 income, I'd prefer that. I'll find more things to deduct off the 2-4k Education Credit for 2017.

Thank you

Are you a graduate student?

SweetieJean — Sat, 01 Jun 2019 01:25:30 GMT

Are you a graduate student?

Yes.

zoiesmith1975 — Sat, 01 Jun 2019 01:25:32 GMT

Yes.

Thank you. I saw that link. I suppose I wanted more detai...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:35 GMT

Thank you. I saw that link. I suppose I wanted more detail about deducting from my W2. In the past I've only been able to deduct from my schedule C - which I don't have for 2016.

The computer is required though. I have a computer but it...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:38 GMT

The computer is required though. I have a computer but it's time to upgrade. Also if it helps lower my taxable 2016 income, that's my goal.

As a graduate student, you do not qualify for the America...

SweetieJean — Sat, 01 Jun 2019 01:25:40 GMT

As a graduate student, you do not qualify for the American Opportunity Credit, so see the reference in that link to Lifetime Learning Credit. I've also seen references that you cannot deduct a computer for school if the school has a computer lab for you to use.

Oh I did not know that about the American Opportunity Cre...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:42 GMT

Oh I did not know that about the American Opportunity Credit. I think I might still qualify for the The Lifetime Learning Credit and the The Tuition and Fees Deduction. I'm not sure about the computer lab rule. I'll look into it. It's bunk though! They are cramped, loud, badly lit, don't have the software I use, and close at night when I'm up writing papers.

For 2016, the American opportunity credit, lifetime learn...

SweetieJean — Sat, 01 Jun 2019 01:25:44 GMT

For 2016, the American opportunity credit, lifetime learning credit, and tuition and fees deduction will not be allowed unless the student receives a Form 1098-T from an eligible educational institution.

OK - based on some other answers and the software not bei...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:44 GMT

OK - based on some other answers and the software not being on them - even though there's a computer lab I think I'm ok.

The question still remains though - since I definitely do not qualify for any tax breaks this year, can I deduct the computer off my W2 earnings for this 2016 calendar year?

This may be helpful:
SweetieJean — Sat, 01 Jun 2019 01:25:45 GMT
This may be helpful:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p970.pdf">https://www.irs.gov/pub/irs-pdf/p970.pdf</a>

You cannot take it as an employee business expense, since...

SweetieJean — Sat, 01 Jun 2019 01:25:45 GMT

You cannot take it as an employee business expense, since you did not own/use it while you were working.

Thank you. Yes, I do not qualify for any educational tax...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:47 GMT

Thank you. Yes, I do not qualify for any educational tax break this year - but again - 2016 is the year I want to reduce my taxable income. So that's the question.

Yes, I understand about not taking it as an employee busi...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:49 GMT

Yes, I understand about not taking it as an employee business expense - but can I still deduct it from my W2 because I went to school and it was required?

Or can I deduct it as a loss on a schedule C?

zoiesmith1975 — Sat, 01 Jun 2019 01:25:51 GMT

Or can I deduct it as a loss on a schedule C?

Yes, I understand about not taking it as an employee busi...

TaxGuyBill — Sat, 01 Jun 2019 01:25:52 GMT

Yes, I understand about not taking it as an employee business expense - but can I still deduct it from my W2 because I went to school and it was required?

No.

You are not self employed, so you can't use Schedule C.
You said you don't qualify for Educational Credits, so the computer won't go towards that.
You seem to have indicated it is NOT used for your W-2 job (only for school), so it is not an Unreimbursed Employee Expense.
It doesn't seem to be a work-education expense (you quit your job). Even if it was, it is first prorated based on personal use and work-education use. Then the deduction is in the category that is limited to the amount over 2% of your income which will almost positively eliminate the deduction. It would further be reduced or eliminated if you don't otherwise Itemize your deductions on Schedule A.
There are no other options for deducting a computer.

Thanks. I have been self-employed in the past and did mak...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:54 GMT

Thanks. I have been self-employed in the past and did make a very small amount this year - $700 but the computer would be $3k. I do itemize deductions every year and have taken them against my W2 in the past. (under the advise of tax accountants)

School is related to what I was doing professionally and...

zoiesmith1975 — Sat, 01 Jun 2019 01:25:55 GMT

School is related to what I was doing professionally and is a way for me to develop my skills in my area. The computer will be for 75% for school and 25% for freelance work in 2017.

If you buy it in 2017, 25% could be depreciated on Schedu...

TaxGuyBill — Sat, 01 Jun 2019 01:25:56 GMT

If you buy it in 2017, 25% could be depreciated on Schedule C, and 75% may be added to your potential school expenses.

Thanks TaxGuyBill! Happy New Year!

zoiesmith1975 — Sat, 01 Jun 2019 01:26:00 GMT

Thanks TaxGuyBill! Happy New Year!

https://ttlc.intuit.com/questions/1900601-can-i-deduct-a-...

SweetieJean — Sat, 01 Jun 2019 01:26:03 GMT

https://ttlc.intuit.com/questions/1900601-can-i-deduct-a-computer-or-laptop-that-i-bought-for-school

topic Are you a graduate student? in Get your taxes done using TurboTax

I worked until Sept (made 95k) and then became a full-time student. Should I buy a computer to reduce my taxable W2 2016 income? Or wait until 2017 (I'll earn much less)?

Are you a graduate student?

Yes.

Thank you. I saw that link. I suppose I wanted more detai...

The computer is required though. I have a computer but it...

As a graduate student, you do not qualify for the America...

Oh I did not know that about the American Opportunity Cre...

For 2016, the American opportunity credit, lifetime learn...

OK - based on some other answers and the software not bei...

This may be helpful: SweetieJean — Sat, 01 Jun 2019 01:25:45 GMT This may be helpful:<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p970.pdf">https://www.irs.gov/pub/irs-pdf/p970.pdf</a>

You cannot take it as an employee business expense, since...

Thank you. Yes, I do not qualify for any educational tax...

Yes, I understand about not taking it as an employee busi...

Or can I deduct it as a loss on a schedule C?

Yes, I understand about not taking it as an employee busi...

Thanks. I have been self-employed in the past and did mak...

School is related to what I was doing professionally and...

If you buy it in 2017, 25% could be depreciated on Schedu...

Thanks TaxGuyBill! Happy New Year!

https://ttlc.intuit.com/questions/1900601-can-i-deduct-a-...

This may be helpful:
SweetieJean — Sat, 01 Jun 2019 01:25:45 GMT
This may be helpful:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p970.pdf">https://www.irs.gov/pub/irs-pdf/p970.pdf</a>