Writing Off Internship Costs

[RF_EE]

Hey all, have any of you had any experience with attempting to or succeeding in writing off your costs for your internship as educational expenses? I've been saving pretty much all of my receipts as I wait to talk with my tax professional, but I figured I would ask if any of you have actually done it.

Thanks!

[MLW62]

I am planning to claim the costs of my travel, lodging, food and utilities, etc... that I incurred this past summer. Otherwise I will have an additional $9,000 of apparent additional income . I know that these expenses are deductible if you are having to work (think internship) at a location other than your primary job (school). Good question though, I would bet that others have done similar.

[CMMMM]

I treated my internships as "engineering consulting" for purposes of self-employment and deducted all expenses during the period. Had to file a Schedule C, but it wasn't a big deal. I also included a note with my return explaining that my 1099 included both scholarship and internship income. I'm certainly not saying my method was correct, but that is what I did.

[MLW62]

Thanks CMMMM, glad to see that others have succeeded!

[Guest]

Thanks CMMMM, glad to see that others have succeeded!

Maybe you define "succeeded" differently than I do, but I'd consider someone who passed an IRS audit as "succeeded". Everyone else is just filing their taxes the way they want.

IOW, go ahead and file your taxes however you'd like. Whether or not the IRS agrees with you may not ever be determined, but you may find yourself in the wrong.

[guest1234]

I claimed all my expenses as work expenses. Used the government rates for entertainment/meals and used actual lodging costs. Can't deduct gas except for to/from airport; or if the facility asks you to drive somewhere for work (Only if it is your own car and not a rental). I deducted my car rental as well. Overall I had over 11,000 in deductions. My first year, I claimed the scholarship as a "lottery win". Mostly because my online software kept kicking it back as "illegal" This was in 2011, when you could accept no other jobs, scholarships, or other monies but theirs; and I refused to put self-employed (Raises your taxes HUGE). For 2012, 2013 I claimed it as Box 3; other income. Then I deducted EVERYTHING. Luggage costs, Airline, business lunches, etc. Used software that I could scan all my receipts and kept a running total. In the end; both for 2012 and 2013 had to pay a little over 2,000.
I have been audited before, and these haven't raised any flags. Hope this helps.

[guest1234]

OH! I also researched if internship payments were actual income; as we are required to get lodging, rent a car (I lived overseas) and airline tickets. My point was that: Is it truly income if we are told by the facility how to spend it? The answer to that is yes; it is income. We can choose to not spend the stipend and live under a bridge if we want to.