POPA

Beautiful!

quinny89

I applied for, and received from the IRS, the lifetime learning credit for attending a part 141 flight school last year while attaining my instrument ticket. Copies of reciepts from the flight school were sent in with the tax return, so it couldn't have been mistaken for a college program. It was not part of a degree program. So I either got away with something, or the info given here is incorrect.

Navajo31

You got away with something. The IRS doesn't even read most returns - they might re-add the math if it's done by hand, but that's about it. That's why they estimate $400 billion in taxes goes unpaid each year.

Should you ever get audited, you would be hit with tax, interest and penalties. They would not normally seek criminal charges unless there was a pattern of "errors" or it was a real large tax credit.

You should really file a 1040X to repay the amount taken as a credit.

(FYI - I do taxes professionally and hold an MBA.)

From IRS website:
Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

JMT21

I'm not so sure he got away with anything. The lifetime learning credit (and HOPE scholarship credit) are available for qualifying tuition and related expenses incurred by students pursuing undergraduate or graduate degrees or vocational training. If its part of a degree program I should think he's safe. If not, it may be considered vocational training. He should talk to a CPA to be sure - the government doesn't appreciate being taken advantage of and tends to come down hard on those that have, just ask Derek Jeter:

http://sports.espn.go.com/mlb/news/story?id=3113901

Navajo31

"If its part of a degree program I should think he's safe. If not, it may be considered vocational training. "

He said it was a Part 141 program - not a college program. If he was seeking a degree, I would agree 100%. College attendence isn't enough unless seeking a degree, or for vocational training a license for a skill. To me, that means vocational training credit would start at the commercial license, since the instrument ticket does not qualify you for a job. Therefore, if you want the tax credit either: a) enjoy in an associates degree program or b) go to a vocational school, and do the VFR commercial before the instrument (once you get the commercial, additional ratings could be deductible).

Bottom line: If you aren't paying college tuition, it definitely does not qualify. If you do pay college tuition, it might qualify.

Estee

[quote=Navajo31;254960]2. Expenses incurred in order to qualify you for a new job are NOT deductible. Therefore, if you think you can deduct the cost of the 737 type rating you got in order to qualify for the job at SWA....sorry, the IRS will reject that one.


Just to make sure I understand...
In the military in 2007...get my ATP...get my 737 type...retire in 2008...get hired for a company other than SWA (type not required)...and I am unable to write these training expenses off...that stinks.
Informative thread. As any smart person, I will do my own research but it doesn't look good.
Thanks

shaggieshapiro

There is a flight school here in Rhode Island, Cintronix, that will give you a degree while obtaining a PPL. They said that I would be eligible for a tax credit for expenses. I'm not sure if the Manager was giving me hot air to sign up, or if it was genuine

slimjim10101

I'm enlisted in the air force doing computer stuff right now and also doing my flight training. i'm doing my ppl through a par61 school and linking that with classes through UVSC. when i hit instrument and up, i'm switching over to par141 so the G.I. Bill will pick up 60%. Will i still be able to write that off?

- Joe.