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