Can I write off internet service for online classes?

Question

I have a 4 year degree, I work full time, but I’m going back to school in the fall. I’ll have to commute 40 miles one way, and as far as I can tell I won’t be able to write off the mileage, but some of my classes will be online so I’ll need internet service…can I write that off? Or is that covered under the Lifetime Learning Tax Credit (do I have to itemize deductions to get that??)

Answer 1

What you can deduct for theses classes depends on the reason for the classes, and the provider of the instruction.  

First, the Lifetime Learning Credit is only for tuition and fees.  It does not include Internet service.

If the classes are work-related, you may be able to deduct the online service charge that is necessary for you to enroll in the classes.  You would also deduct tuition, fees, books, and supplies.  If you travelled to class you could deduct your transportation expenses.   You could deduct these expenses as unreimbursed employee expenses on Schedule A, so you woud have to itemize.  Your deduction is limited to the excess of 2% of your adjusted gross income.

(Still work-related case):  An exception would be if the educational institution is qualified (a degree-granting institution).   You may be able to deduct Tuition and Fees or take the Lifetime Learning Credit.  Neither of these benefits required you to itemize.  So, you could split the expenses between Schedule A (all but tuition and fees) and the deduction or credit, if that was to your advantage.  

If the classes are not work-related, you cannot deduct the internet service or expenses other than Tuition and Fees.  If the educational institution offering the classes is qualified (generally a degree-granting institution), you may qualify for the Tuition and Fees Deduction or the Lifetime Learning Credit.

Answer 2

No.

Only "Tuition and Fees" are eligible for the credit.