Beaver

A relative of mine was laid off all of 2010 and was going to school. Her last job was union, so she gets paid schooling for two years through some trade act.

Her schooling costs come to close to $7,000 and she has 1099 forms and all receipts. Should she use these expenses on her taxes even though she isn't actually paying them? I said yes, since they are a benefit from her job and not a scholarship or grant.

The deduction will save her $2500 in taxes, but she is worried about being audited. She talked to people at school and didn't get an answer. She called IRS help and didn't get a clear answer.

If she has all forms and receipts does she have anything to be worried about?

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dreamcastrocks

How is she not paying for them? That's the major factor as I see it? Is she getting reimbursed or something?

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'Just to reiterate, Derek Anderson isn't hurt.... he has just been benched.'
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Beaver

I believe the money is put into some kind of account and it is pulled from there.

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You can't climb the ladder of success with your hands in your pockets.

82CardsGrad

I'm no tax expert, but, it seems to me that if she is not actually incurring the expenses since her job included schooling costs, I really don't see how she can deduct the expense on her taxes...

Linderbee

No way should she use them as expenses. The union is probably declaring those as some sort of write-off, using her social security #, etc. If anything, she has to declare as income (isn't that what a 1099 is, anyway? Income from a different source)?

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dreamcastrocks--My Hero!!

Beaver

http://www.irs.gov/publications/p970/index.html

Looked at this web site. I'm going to tell her to only deduct expenses that she actually paid out of pocket. Weird that the person from the IRS help line couldn't answer that.

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You can't climb the ladder of success with your hands in your pockets.