Is TPS – The Potter’s School tuition a tax-deductible “qualified education expense” under U.S. federal or state law? This depends on which deduction you are seeking (primary/secondary school or college tuition), the status of your TPS enrollment (part-time or full-time “Diploma Plan”), and the specific laws of your state.
TPS offers dual credit college courses, but you are not enrolled in the college to receive the college credit. For a TPS College course, you pay TPS for the tuition and a separate non-tuition fee to the college for processing the credits. For college expenses to be deductible, the college must provide a 1098-T. No 1098-T is provided for a dual credit course, so no deduction is available.
Primary/Secondary School Tuition
The “529 deduction” also extends to tuition payments to elementary and secondary schools. The federal government specifically excludes “homeschool expenses” from this deduction:
- The payments must be for tuition (not other school expenses).
- The institution must be “a public, private, or religious school” (it can be an online school).
- The deduction may not be used for homeschool expenses, including fees paid for “classes” taken from outside organizations.
Is TPS – The Potter’s School tuition tax deductible as a primary/secondary school tuition under 529? You must consult a tax professional licensed in your state to get an answer for your specific situation (TPS cannot provide you tax advice). If you are registered as a full-time student in the TPS Diploma Partnership, then it is possible that you are eligible under the “public, private, or religious school” extension since TPS is an independent accredited private Christian school. (However, if the school must be registered in your state, this rules out TPS.)
If you are not registered as a full-time student in the TPS Diploma Partnership, then your legal status is “homeschooler” and your TPS courses are “classes taken from outside organizations”, making it inadvisable and probably illegal to claim a deduction based on TPS tuition.
Consult a Tax Professional Licensed in Your State
Regardless of your enrollment status, if you plan to use TPS tuition as a “qualified education expense” on your taxes, we recommend you consult a tax professional licensed in your state (every state has somewhat different laws regarding the 529 deduction). Please do not include TPS in your decision process because TPS is not a tax expert in any state and will not provide you guidance outside of our expertise and authority. If you request it, TPS will provide you a signed receipt for tuition, fees and payments for a specified period. TPS will not provide you a “tuition-only receipt” or a “tuition receipt for tax purposes” or a “school tax ID” (TPS does not have a “school tax ID”) for any request — TPS will politely decline any tuition verification request that is for “tax” purposes.