Iowa Tuition & Textbook Tax Credit - What Say You, HROT?

[BondHawk]

So we had always taken the tax credit for textbook fees (linked below) for our kids on our Iowa returns, but until last year I had no idea you could also add things like Driver's Ed fees, activity tickets, school supplies, etc. The one that really caught my attention was "Shoes" that are only used in the sport your child participates in (i.e. basketball shoes you could wear on the street are a no-go). Obviously the potential for abuse is rampant here, but that got me thinking about the "Materials for Extracurricular Activities" (such as sporting events....etc.). Are we talking baseball bats and gloves? And if not, why not based upon everything else they include on this list? My kids are in high school and only use their theoretical bats for public high school sports, not club.

Either way Iowa residents, enjoy the hundreds of dollars of state income tax savings courtesy of this post.

Eligible Expenditures

 

[onlyTheObvious]

It’s a trap. Years later they will audit you and ask for receipts and letters from coaches and game programs to prove they played.

 

[BondHawk]

It’s a trap. Years later they will audit you and ask for receipts and letters from coaches and game programs to prove they played.

Not in this new era of limited government and no IRS agents. This is Thunderdome.

 

[stanzithemanzi12]

It’s a trap. Years later they will audit you and ask for receipts and letters from coaches and game programs to prove they played.

You're using years later in a way that seems like more than 3 years later. I've never been audited, but it's extremely rare for an audit to back further than 3 years.

 

[chalupa81]

So we had always taken the tax credit for textbook fees (linked below) for our kids on our Iowa returns, but until last year I had no idea you could also add things like Driver's Ed fees, activity tickets, school supplies, etc. The one that really caught my attention was "Shoes" that are only used in the sport your child participates in (i.e. basketball shoes you could wear on the street are a no-go). Obviously the potential for abuse is rampant here, but that got me thinking about the "Materials for Extracurricular Activities" (such as sporting events....etc.). Are we talking baseball bats and gloves? And if not, why not based upon everything else they include on this list? My kids are in high school and only use their theoretical bats for public high school sports, not club.

Either way Iowa residents, enjoy the hundreds of dollars of state income tax savings courtesy of this post.

Eligible Expenditures

Why not golf clubs, balls, tees, gloves, etc? My son is on the golf team, so it should be good.

 

[QChawks]

I always itemize my tax reductions but it's never larger than the standard deduction

 

[BondHawk]

Why not golf clubs, balls, tees, gloves, etc? My son is on the golf team, so it should be good.

Agree, and same. It reads as if it is something necessary to participate in a school activity, it is fair game. And you can't play high school golf without a complete set of new clubs, every year. It's science.

 

[BondHawk]

I always itemize my tax reductions but it's never larger than the standard deduction

It isn't a deduction though, it is a credit on state (of Iowa) taxes. So it will swing in your favor up until you hit the limit for the credit.

 

[QChawks]

It isn't a deduction though, it is a credit on state (of Iowa) taxes. So it will swing in your favor up until you hit the limit for the credit.

oh duh, I always do that to for the kid's private tuition

if I recall it's up to $500 credit each

 

[BondHawk]

oh duh, I always do that to for the kid's private tuition

if I recall it's up to $500 credit each

Right. Which would basically pay for that new baseball bat.