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Itemized Deductions Schedule-A


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Old 09-17-2013, 04:12 PM
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Is internet service used for education tax deductible?

My kids go to California public school and most of their homework is online. I am also planning on one more desktop since each kid will be needing their own computer. I also use the internet service for office related tasks.
1. Can I take tax right off for a portion of home internet bill (60%).
2. Can I take tax right off on the new computer that I will need to buy for the 2nd child. It will be used exclusively for homework only.
3. What form do I need to use for either of the 2 above?



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Old 09-18-2013, 02:54 AM
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Originally Posted by ppandya View Post

.
#1;1. Can I take tax right off for a portion of home internet bill (60%).




#2;2. Can I take tax right off on the new computer that I will need to buy for the 2nd child. It will be used exclusively for homework only.



#3;3. What form do I need to use for either of the 2 above?
#1;A tax deduction may allow you to offset the cost of Internet access if you qualify; to deduct the cost of your in-home Internet service, you must use your Internet connection for work purposes. This includes checking your work email on weekends, logging into company databases and participating in online conference calls from home. You may only deduct the portion of your Internet that you use for business purposes. For example, unless you work at home often and spend very little time on the Internet for personal matters, deducting half the cost of your monthly Internet bill is probably outside what the tax code allows. Instead you may deduct a smaller percentage based on your actual business use that you can verify with information such as network data logs or your employer's time sheets that show you often work from home. SO, when you qualify for an Internet deduction on your taxes, you can include several different types of purchases and expenses. The monthly cost of Internet access from your local provider is among the major Internet expenses, but the cost of hardware such as modems, wireless routers and cables is also deductible. Other relevant Internet expenses include setup costs for a new connection, the cost of registering a domain name and any money you pay to a webmaster for consulting.





#2; In general, No. Just because it is helpful for your kid to have it, it is not deductable as an education expense.
NOTE: A computer for school purposes may or may not qualify for edu credits. Generally, if your computer is a necessary requirement for enrollment or attendance at an educational institution, the IRS deems it a qualifying expense. If you are using the computer simply out of convenience, it most likely does not qualify for a tax credit.


#3; The method you use to deduct Internet expenses from your taxes depends on how you file you return. If you include biz income on your individual income taxes, you can include the cost of Internet when you fill out the business expenses section of Sch C or Sch C-EZ. If you don't operate a business but use your personal home Internet for work, you can only deduct the business-related portion of the cost if you itemize your deductions on Sch A of 1040.So unless you use Sch A of 1040, you can’t deduct it. Unless you have additional business expenses or deductions, you might save more money by taking the standard deduction, which also simplifies filing.



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