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Author Topic: 70k per year, 30k in tuition, do I have to pay taxes?  (Read 1589 times)

stupendous

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70k per year, 30k in tuition, do I have to pay taxes?
« on: January 27, 2005, 11:38:46 AM »


If I made 70K and had to pay tuition of 30k in one year, how much of the 70K would I be taxed?
This is a hypothetical, figured some of you part-timers may know the anwser to this.

duma

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #1 on: January 27, 2005, 11:40:40 AM »
Tax season is here. Go to H&R Block and they can help you with school and taxes.

stupendous

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #2 on: January 27, 2005, 11:48:15 AM »
yes but that will cost money. I'd rather research it from work and submit my own return.

duma

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #3 on: January 27, 2005, 12:15:31 PM »
yes but that will cost money. I'd rather research it from work and submit my own return.
It would cost you money, but might save you more in the end. And before you ask, no, I don't work for H&R Block. They have saved me allot of money in the past, so I just think it is a good route to take.

seankenn

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #4 on: January 28, 2005, 02:35:48 PM »
Unfortunately, only ~3K can be deducted.  I think this is the total.  I can't remember. If you go to the IRS website you should be able to find out.  There are two places you can deduct.  So you may be able to squeeze out more than 3K.

Wild Jack Maverick

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #5 on: January 28, 2005, 04:17:20 PM »
uh, that would be in Pub 970--Tuition and Fees Deductions

 Beginning in 2004, the amount of qualified education expenses you may take into account in figuring your tuition and fees deduction increases from $3,000 to $4,000 if your modified adjusted gross income (MAGI) is not more than $65,000 ($130,000 if you are married filing jointly). If your MAGI is larger than $65,000 ($130,000), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum tuition and fees deduction is $2,000. No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000).

However, since there are several qualifying and disqualifying aspects for the Tuition and Fees deduction, and other education credits, it would be best if a tax professional (such as H & R Block) would prepare the tax return.     
"I enjoy being in school. I've learned so much already, with taking economics and law, and I have marketing and statistics coming up next."

stupendous

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #6 on: January 28, 2005, 05:21:02 PM »
I'll have to look more into it but that really pisses me off I have to pay taxes on the 30k+  I'm spending on school and books. Add to that I doubt I'll be able to get any loans because of the income and I'm pretty much screwed by dubya.

Thanks for the responses though.


uh, that would be in Pub 970--Tuition and Fees Deductions

 Beginning in 2004, the amount of qualified education expenses you may take into account in figuring your tuition and fees deduction increases from $3,000 to $4,000 if your modified adjusted gross income (MAGI) is not more than $65,000 ($130,000 if you are married filing jointly). If your MAGI is larger than $65,000 ($130,000), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum tuition and fees deduction is $2,000. No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000).

However, since there are several qualifying and disqualifying aspects for the Tuition and Fees deduction, and other education credits, it would be best if a tax professional (such as H & R Block) would prepare the tax return.     

seankenn

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #7 on: January 28, 2005, 05:22:11 PM »
I hate GW Bush too, but these rules were in place before he started to turn our country to *&^%. 

Wild Jack Maverick

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #8 on: January 28, 2005, 08:20:36 PM »
I'll have to look more into it but that really pisses me off I have to pay taxes on the 30k+  I'm spending on school and books.



Yeah, really. And just think, that $30K is more than what some people earn in 2 or 3 years, or 10 years, or more. (I read somewhere that employees of NIKE™  Indonesia only earn $1.68 per hour.)

Anyway, consider what the $30K pays for--salaries of faculty (some who are probably paying their own student loans) and staff, use of the facilities and equipment, utilities, groundskeeping, maintenance, housekeeping, supplies, library and computer-lab equipment, etc., etc.

I would presume that the tuition fees of a university are directly related to the overhead cost of operations. Luxury costs big money.



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Plush

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Re: 70k per year, 30k in tuition, do I have to pay taxes?
« Reply #9 on: February 01, 2005, 12:22:54 PM »
Get a REAL CPA to do it.  Services only cost about $200 and if you get a good one, they will track down further deductions for you.  Wasn't it Bush who said that all the rich people were getting accountants to save taxes, so what's the point of taxing them anyways?  Well, pretend you're a rich person!  I will be this tax season!

You're lucky if they fill out that e-form correctly at H&R.  My CPA will be re-doing my H&R returns from the past 2 years.