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Old 02-11-2010, 12:43 PM
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Join Date: Feb 2010
Location: chicago, Illinois
Posts: 1
Default Tuition, Loans, and Taxes Question

Hi everyone I am in a bit of a pickle about my finances.

I am working and getting a masters degree in environmental engineering. My company has a system in place to reinburse people for tuition but now they are trying to fumble their way out of giving out the reinbursement.

Last year I made around 125,000$ of taxable income, this includes 19,000 for relocation + around 12,000 included as taxable extras like car and hotel. The point being is that I do not qualify for federal tax breaks for tuition (I paid around 6000 a year last year). First does anyone know any way of getting a tax break for this income? I've heard I can classify it as a business expense to get some of the money back. I also might try to classify relocation, and the hotels and car as a business expense. Does doing that make sense?

The second thing is that I am still set to make around 100,000 this year and will be on the hook for tuition. I don't want to spend all my money on tuition and was thinking about getting a student loan. I have no outstanding debt and would like an oppurtunity to increase my credit rating for purchasing a house, and I am 25 years old. Would doing this be a good idea? I will be able to easily pay the loan, and it would spread out my finance a little bit so I can invest it elsewhere and make money. The debt would be about 20,000 dollars of two years to pay for my school, and also I still might be reinbursed for some of the fees... this would get me off the hook until I get the money (hell I should charge my company interest).

thanks!
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