Tax Deductions for Care of Unrelated Students

Video Transcript

""Your wayward cousin's child? You know, you can deduct that. I'll tell you more about it when you come in, but keep track of it, if you spend more than fifty bucks a month, it's capped at that, but I'll tell you more about it when you come in." Hi, Tom Choisnet, enrolled agent, and I wanted to tell you a little bit about care of unrelated students. This is a little known deduction and, of course, through the foreign exchange programs, it's common knowledge, but if you have a child in your home that's not related to you, you can deduct taking care of them regarding their schooling. Before you jump on this one, it's limited to fifty bucks a month, so it's not a big thing, but it's a little loop that a lot of people just don't seem to know. So I thought I'd make a separate segment and tell you about it, and perhaps it will help you reflect on some other areas. Thank you."