Submitted By: Armand
Answered: June 22, 2015 8:57 am

Are college room and board deductible?

Generally no (and they are not qualified expenses for purposes of the American opportunity or lifetime learning credits). If the education is for business, you may be able to treat the cost of room and board (along with tuition and fees, travel, and other related costs) as a business expense. To be considered a business expense, you must:

  • Already meet the minimum standards for the job
  • Not be unemployed—just taking temporary leave for education
  • Take the courses merely maintain or improve your skills
  • Not be qualified as a result of the courses to pursue a new profession
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Tax Glossary

Withholding

An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.

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