August 7, 2012 8:30 am

Five education costs you pay without tax help

Not every expense related to education for yourself or your child is tax deductible or qualifies for tax-free withdrawals from special education accounts. Here are some items you may want tax assistance for, but you’re out of luck:

  1. Prep courses. Courses to get ready for the SATs, LSATs, GMATs, or other tests are not deductible. Withdrawals from special accounts for this purpose won’t be tax free.
  2. Travel to visit colleges. Many families tour a number of colleges, paying for motels, food, gas, and other costs for the trip; the costs are not deductible.
  3. Certification. Once a student has completed a course of study, often there are certification tests, such as the bar exam for lawyers. The costs of prep courses for certification tests, as well as the fee for the test, are not deductible.
  4. Tutoring. At college, many students require extra help to succeed. The cost of a tutor is not a qualified education expense for any tax break.
  5. Travel as a form of education. If you work, you may go to far away places to absorb the atmosphere, practice a language, look at architecture, or for some other reason. The trip expenses are not deductible. However, if you take courses abroad, they may qualify for a tax deduction.
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FACT: 

For 2008 returns filed in 2009, the top 4 errors (in addition to incorrectly reporting the recovery rebate credit that only applied in 2008) that occurred most frequently were: calculating the tax, figuring the number and amount of exemptions, figuring the earned income tax credit, and reporting the standard deduction or itemized deductions.

Source: IRS Data Book 2009, Table 15

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