Flight training tuition

starman2112

starman2112

Well-Known Member
So april is quickly approaching and i have a quick question, is flight training tuition tax deductible? I haven't gotten anything from the loan company or from the school, so i'm assuming that it's just a nice way to spend 50K, BUT perhaps one of you knows better than I and can illuminate this for me.
 
I don't have a lot of experience with taxes, but if you get a 1098-T or a 1098-E, those would be the forms to look for. The -T is for tuition paid and the -E is for any student loan interest paid. If you didn't get anything, you might want to check with your school or loan company as some are publishing the forms online. I had to go looking for some of mine. This is my experience anyway in a collegiate type of setting. Things might be (probably are) different at a stand-alone flight school. I don't think that my flight costs ever showed up on the 1098-T since they are separate from tuition, but the interest on federal and private student loans does show up on the 1098-E which can be used for some deductions/credits.
 
Haven't seen the forms in the mail and my loan company can't decide it my interest is eligible. Any former ATP grads who have written tuition or interest off?
 
starman2112 said:
Haven't seen the forms in the mail and my loan company can't decide it my interest is eligible. Any former ATP grads who have written tuition or interest off?
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Really a better question for an accountant or a tax lawyer, not a bunch of pilots! In general though, no, I doubt it.

If you are commercial/ATP/CFI already, then yes, there is quite a bit of training expense you can probably deduct from your income.
 
Our university (full on accredited State college) sends the 1098-T forms to all students well in advance of tax season.
 
I actually just called ATP about that yesterday. They told me that they are considered a flight training academy, and they aren't an accredited school. Therefore, the money paid for training was not tax deductible.
 
In general, money spent to qualify for a new career field is not tax deductible. If you spend money on continuing education to keep your current job or to better your qualifications in your current job then it's deductible. If you have a student loan, then the interest on that loan is deductible even if the tuition isn't. Even so, for most people starting out after college the standard deduction will likely be more than the student loan interest you pay until you buy a house. YMMV, see your tax preparer for your specific case. He could probably answer your question in a few minutes.
 
The bank sent me a 1098-E with the amount of interest paid on the loan for tax purposes.

I don't think anybody other then a tax account or tax attorney could tell you whether it's legal to deduct it.
 
DL31082 said:
I don't think anybody other then a tax account or tax attorney could tell you whether it's legal to deduct it.
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Even then, there will be varying opinions. What Nihon_Ni said is generally correct.

It depends on how much you make, how much is from other sources, etc, etc, etc.

As a commercial pilot, as I understand things, I can deduct my costs for insurance, mileage, currency flights and additional ratings and training. But since the vast majority of my income does not come from commercial aviation, it is likely that the IRS would only allow those deductions up to the amount I earned from aviation.

I actually would be interested in talking to a tax lawyer/CPA that specializes in part time aviation income, if anyone knows anyone ;) Flying is likely to be a money-losing endeavor for me for the foreseeable future for me, but there are probably some tax advantages I don't take advantage of.
 
This has more to do with the schools status with the Dept of Education, if the school is recognized and has a "number" it works like any other school for tax deductions.
 
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