Tuition/Child Care Expenses/Charitable Contributions
FIN 5.0
Tuition payments may not be characterized as charitable contributions for income tax purposes. Therefore, schools do not issue documentation to substantiate a tuition payment as a charitable contribution.
Purpose:
To comply with State and Federal Law.
Commentary/Procedural Points:
Tuition paid for the education of children is an expense of the taxpayer, not a charitable contribution to the school. A tuition payment to a parochial school generally is not considered a charitable contribution because the taxpayer making the tuition payment receives something of economic value, i.e., educational benefits, in return.
If tuition is paid by someone other than a parent, (e.g., a grandparent, other relative, or friend) on behalf of a particular student or students, no charitable contribution can be claimed.
A contribution to a scholarship fund or to a tax-exempt school for the purpose of awarding scholarships will not qualify as a charitable contribution if the donor selects, or can select, one or more particular recipient(s) of the scholarship.
Expenses for before- and after-school care and some pre-school programs may be eligible as a “child care” deduction for “qualifying” persons.
References:
www.irs.gov, Publication 503
January 12, 2005