Ask The Taxgirl: College Expenses

Taxpayer asks:

My daughter is in her second semester in Troy University. She has never had an income so we are paying everything from tuition, books, clothes, her apartment, providing a car, cell phone, gas etc. I know that I can deduct the tuition, what about the living expenses?

Thanks for any info you can give me.
Taxgirl says:

First of all, if your daughter is reading (or even if she’s not), she needs to give you a great big smooch and say thank you. It sounds like you are going above and beyond – an apartment? a car? a cell phone? Can you adopt me?

All of that said, you cannot deduct living expenses on your federal income tax return. It’s considered the cost of, well, living.

All is not lost, however. You may still be able to deduct medical expenses, some school fees and claim your daughter as a dependent if you are supporting her. See my post about child-related tax breaks for more information.