Make the most of
Education tax benefits

Whether you're going to college yourself or paying for your child to attend, you're probably familiar with Form 1098-T.

Schools send these annual informational statements to report qualified tuition and educational expenses. You might be planning to use the amount shown on the form to calculate education credits or deductions on your tax return.

But did you know your own records of how much you spend on tuition, as well as certain course-related books, equipment, and supplies, could lead to larger tax savings? That's because education credits and deductions are based on what you actually paid, which could differ from the total on Form 1098-T.

Here are two suggestions to help you get the greatest benefit.

• Track tuition paid during the year. You can generally take a deduction or credit on your 2007 tax return for amounts you paid throughout the year that relate to your enrollment in 2007. You may also be able to include amounts paid in December for courses that start during the first three months of 2008.

  Unrefunded fees for classes you drop count, too, as do expenses you pay with loan proceeds.

• Keep a list of other educational expenses paid during the year. Personal costs, such as room and board, don't count as educational expenses for purposes of tax deductions or credits. But fees the school requires as a condition of your enrollment can qualify.

  Examples include student activity fees and certain equipment and books.

To learn more about education tax benefits, please contact us.

Ciuni & Panichi, Inc.
Certified Public Accountants & Business Consulting Firm


25201 Chagrin Boulevard
Cleveland, Ohio 44122

(216)831-7171
Fax:(216)831-3020