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Can I Deduct Education Related Tuition and Fees on My Wisconsin Return?

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Question
Can I Deduct Education Related Tuition and Fees on My Wisconsin Return?

Answer

You may be able to claim a subtraction for up to $6,940 (per student) of the amount you paid during 2014 for tuition and mandatory student fees for you, your spouse (if married filing a joint return), and children whom you claim as dependents on your federal income tax return

CAUTION If you claimed a tuition and fees deduction on your federal return, be sure you have completed Wisconsin Schedule I

The tuition and mandatory student fees must have been paid during 2014 to attend any of the following:

• Classes in Wisconsin at a school which qualifies as a university, college, or technical college. A “university, college, or technical college” is any school which has a curriculum leading to a diploma, degree, or occupational or vocational objective.

• Classes in Wisconsin at other post-secondary (post-high school)schools that have been approved by the Wisconsin Educational Approval Board.

• Classes in Minnesota at a public vocational school or public institution of higher education in Minnesota under the Minnesota–Wisconsin tuition reciprocity agreement.

• Classes outside Wisconsin provided the tuition is paid to a university, college, or technical college located in Wisconsin. The subtraction does not apply to tuition or fees paid to pre-schools, elementary, or secondary schools.

Tuition and mandatory student fees paid to a school which fits into one of the four categories listed above may be subtracted regardless of the type of course taken. For example, tuition paid for craft or recreational courses at a technical college qualifies for the subtraction.

Tuition and mandatory student fees paid to a school which does not fit into any of the four categories may not be claimed as a subtraction. For example, the subtraction does not apply to a fee paid to a retail craft store to attend a session on flower arranging.

Tuition and mandatory student fees paid for correspondence courses or courses received via the Internet or other electronic transmission qualifies for the subtraction as long as the courses are taken in Wisconsin and are presented by a school (located in or outside Wisconsin) which qualifies as a university, college, or technical college, or a school approved by the Wisconsin Educational Approval Board.

CAUTION The subtraction only applies to tuition and mandatory student fees. Amounts paid as separate charges for other items such as room and board, athletic tickets, or other costs may not be subtracted

You cannot claim a subtraction for tuition and fees paid with certain tax-free funds. For example, you cannot claim a subtraction for tuition paid with tax-free scholarships or Pell grants or for amounts paid or reimbursed to you by your employer. You can subtract tuition and fees paid from loans, gifts, inheritances, and personal savings

You cannot claim the subtraction if the source of the payment is an amount withdrawn from a Wisconsin state‑sponsored college savings program or college tuition and expenses program (for example, EdVest or Tomorrow’s Scholar). This limitation applies only if the owner of the account or other person who contributed to the account (for example, parent, grandparent, aunt, or uncle) previously claimed a subtraction for contributions to these programs.

The subtraction is limited if your federal adjusted gross income exceeds certain amounts. Your federal adjusted gross income is the amount on line 1 of Form 1.

 


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Article Details
Views: 2053 Created on: Jun 15, 2013
Date updated: Aug 06, 2015
Posted in: STATES, Wisconsin

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