[topgun]

Hi,

I am currently working on an H1B VISA since October 2005 and my wife is studying on an F1 student VISA. I pay my wife's educational expenses such as tuition fees, books, laptop, rent (we stay in different cities) and living expenses. My wife does not have any earnings of her own.

Can I claim any tax benefits for my expenses relating to her education?

Thanks.

[AtlantaTaxExpert]

Yes, you CAN claim either an education expense deduction or one of the education credits IF you file jointly as a resident laine with your wife.

Understand that if you choose this option, your wife will be considered a resident alien henceforth. If she gets a job off the university on an OPT, she will be liable for Social Security and Medicare taxes.

[topgun]

Yes, you CAN claim either an education expense deduction or one of the education credits IF you file jointly as a resident laine with your wife.

Understand that if you choose this option, your wife will be considered a resident alien henceforth. If she gets a job off the university on an OPT, she will be liable for Social Security and Medicare taxes.

Thank you. Can you clarify which of the below deductions is applicable and which IRS form needs to be filled for this?

1. Tuition and Fees deduction
2. Hope Learning Credit
3. Lifetime Learning Credit

As I understand, the Tuition and Fees deduction expired at end of 2005. It allowed up to $4000 in educational deductions which is higher than option 2 and 3. Do you know if it has been extended for 2006?

Regards.

[AtlantaTaxExpert]

TopGun:

You are correct about the expiration date for the Tuition and Fees Deduction, but there is an extension currently before Congress which is expected to pass before Congress adjourns.

Unless your wife is in her one of her first two years of post-secondary education (in her case, Freshman or sophomore year of college), the Hope Education Credit is not available to her.

That leaves the Lifetime Learning Credit, which is available regardless of her year in school.