I got a job as AIN after I finished my 1st-year placement in aged care. Recently, I started working as a SIN (student in nursing), this position is only available for students in their 2nd year of nursing courses. I have already read the information available on the self-education expenses page and seems like I can claim my tuition fees, however, when I prepared my tax it shows a warning that my expenses are much higher than general expenses and someone told me that there are 99% chances for review from ATO, so I am not sure if I am eligible to claim my tuition fees. Could anyone advise me on this?
Hey @Sarbjeet,
That warning comes up if others working in the same or similar roles have claimed less deductions on their tax return. But let's see if I can clear things up and see if this differs to what you've done.
As part of the eligibility to claim self-education expenses, you're only able to claim a deduction if the study relates to your employment activities at the time the expenses were incurred. So dates are important to consider here. If you became liable for 2nd year tuition fees before starting the SIN role, then those fees wouldn't be deductible. This is because at the time you incurred the expense, your current role (being an AIN) didn't require you to be studying 2nd year nursing. However, any 2nd year course fees you become liable for after commencing the SIN role can be deducted as that role requires you to be undertaking 2nd year courses. It comes down to what your current role requires of you, and you can't claim expenses that enable you to initially gain employment or change your type of employment.
When it comes to calculating your expenses, you also need to factor in whether the $250 reduction applies. We place self-education expenses into 5 categories, and if all of your self-education expenses are from category A, then you'll need to reduce your claim by $250. Although, if you have expenses from category E (non-deductible expenses), then you can offset those expenses against the $250.
However, if you've looked at all of these amongst the other criteria and can justify your reasoning for the deductions, then you can still claim them regardless of the warning message. If we need you to support your deductions, then maybe have evidence of how you've worked them out, and also keep records of your expenses :)
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Hey @Sarbjeet,
That warning comes up if others working in the same or similar roles have claimed less deductions on their tax return. But let's see if I can clear things up and see if this differs to what you've done.
As part of the eligibility to claim self-education expenses, you're only able to claim a deduction if the study relates to your employment activities at the time the expenses were incurred. So dates are important to consider here. If you became liable for 2nd year tuition fees before starting the SIN role, then those fees wouldn't be deductible. This is because at the time you incurred the expense, your current role (being an AIN) didn't require you to be studying 2nd year nursing. However, any 2nd year course fees you become liable for after commencing the SIN role can be deducted as that role requires you to be undertaking 2nd year courses. It comes down to what your current role requires of you, and you can't claim expenses that enable you to initially gain employment or change your type of employment.
When it comes to calculating your expenses, you also need to factor in whether the $250 reduction applies. We place self-education expenses into 5 categories, and if all of your self-education expenses are from category A, then you'll need to reduce your claim by $250. Although, if you have expenses from category E (non-deductible expenses), then you can offset those expenses against the $250.
However, if you've looked at all of these amongst the other criteria and can justify your reasoning for the deductions, then you can still claim them regardless of the warning message. If we need you to support your deductions, then maybe have evidence of how you've worked them out, and also keep records of your expenses :)
@RachATO so what i have understand is that i am not able to claim my study expenses as that course enabled me to get AIN job initially. Just to clarify, would i be able to claim my tuition fee next year as to continue my job as SIN, it requires me to be a nursing student. Thank you so much for all your help.
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