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?