Question about College Expenses and Taxes

Triple S

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3:59p, 10/17/24

S

Have to buy a car for my daughter to drive herself to college. Can I claim the purchase for her car on my taxes as a college expense?

I know you can only claim college expense stuff for 4 years. May make sense for me to buy the car after the first of the year and claim it on 2025. She doesn't start school until January.

Curious how those expenses are looked at with Taxes.

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Ag92NGranbury

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4:04p, 10/17/24

AG

"No, costs associated with transportation to and from campus, such as airfare or gas, are not qualified education expenses"

https://www.savingforcollege.com/article/what-you-can-pay-for-with-a-529-plan

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SteveBott

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4:07p, 10/17/24

AG

Granbury don't be so quick to opine. Let the OP write off a car and see if the IRS has an issue with it. He can update us next year.

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ATM9000

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4:07p, 10/17/24

AG

Think OP is thinking about the AOTC rather than a 529 plan and yeah… same thing they are pretty explicit that transportation costs can't be in that credit.

Ag92NGranbury

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In reply to SteveBott • 4:10p, 10/17/24

AG

SteveBott said:
Granbury don't be so quick to opine. Let the OP write off a car and see if the IRS has an issue with it. He can update us next year.

in that case, write off the beer as well!

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Triple S

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4:17p, 10/17/24

S

Yeah, I have a 529.

Not buying her car out of that.

Just buying in general.

Wasn't sure if that qualifies for the college tax credit you get.

Sounds like it doesn't. Thanks!

permabull

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In reply to SteveBott • 5:47p, 10/17/24

AG

Everything is deductible until you get audited

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gigemhilo

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In reply to Triple S • 9:12p, 10/17/24

AG

Even if you could take it, you are capped out at 4.000 in college expenses for the credit. Anything over 4,000 will not matter. You should be able to max it out on tuition alone.

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