Are Tutoring Costs FSA Deductible?

Are Tutoring Costs FSA Deductible?There is a lot of confusion out there regarding the two different types of income tax deductible programs available to parents of students who are in the FAFSA (Free Application for Federal Student Aid) process. There is a difference between the two, though, and the important thing to remember is that all of the programs except for the Federal Pell Grant program are subject to being taxed. Here's what you need to know.First of all, when it comes to federal student aid, what the government does offer is not taxable. So the programs that are tax deductible are specifically designed to provide aid to children so that they can go to college. If you use a program like this as a form of aid to pay for your child's tuition, you may be able to deduct part of the cost from your taxes. This is one way that your tax dollars are being used, though, you may also be able to take advantage of other programs that can get tax deductions.The other program that is tax deductible is the various school loan programs that are available to families. The most common ones, though, are the Stafford loans and the Perkins loans. These are just two of the many available, and if you go with a program like the Perkins loan, which is for families with very low or average income, you will be able to deduct the interest as well as the principal of the loan.In addition to these two, there are other programs that are tax deductible, but they may not be as direct. The most common of these is the FAFSA that is offered by the Department of Education, the U.S. Department of Health and Human Services, and the Department of Housing and Urban Development.The Federal Family Education Loan (FFEL) program, like the FFEL (the single loan program) is a direct form of Federal education assistance. It is a non-repayable loan that does not have to be repaid. There are two main components of this loan, however, and each is either tax deductible or not.The first component is that you can only claim the interest on the loan if you have been enrolled in the single loan program. However, if you go with the FAFSA (Free Application for Federal Student Aid), you can claim the interest on the FFEL too. This means that if you have to go back to school in order to help pay for your child's education, you will have to pay for it out of pocket. This means that if you do not choose the FFEL, you will not be able to claim the interest on your student loans.There are also two other programs that are not tax deductible, but can be claimed if you go with the FFEL. The PLUS loan is a program for families with low to moderate income, and it also does not have to be repaid. However, if you go with the Federal Perkins Loan, you will be able to deduct a portion of the payments that you make. That portion, though, is not available to those who go with the FFEL.