Question

1. List as many possible tax research issues as you can to determine tax treatment(s) with respect to the payments to the school.

Answer 1

Tution fees ie school fees is allowed as a deduction in many income tax rules :

One of which is :The deduction for tuition fees is covered under Section 80C of the Income Tax Act and is subject to an overall ceiling limit prescribed under this section (i.e. Rs 150,000) which includes other deductions such as contribution to provident fund contribution (PPF), life insurance premium (LIP), subscription to savings

The Tuition and Fees Deduction allows eligible taxpayers to deduct up to $4,000 from taxable income to help cover higher education costs for themselves, a spouse and dependent children. The Tuition and Fees Deduction expired at the end of 2016 but was renewed for the 2017 tax year with the Bipartisan Budget Act of 2018. The Further Consolidated Appropriations Act, 2020 extended the expiration date for the Tuition and Fees Deduction to December 31, 2020.