Tax deduction for Legal Fees?

Can I claim my tuition fees as a tax deduction under the VET FEE-HELP Scheme if my employer is paying it?

• I recently undertook a course and have taken out a VET FEE-HELP loan to cover the cost. My employer has offered to repay my FEE-HELP debt and although he hasn't yet, will put all the repayments down on my PAYG Payment Summary as Reportable Fringe Benefits even though I'm not actually sacrificing any of my salary - my wage will stay the same, the repayments are an extra bonus for me because the course will improve my skills at work. My question is am I able to claim the original tuition fee if my employer is paying the repayments. I spoke to the ATO but i'm still unsure as they said I can, however i'm not paying a cent!! And I'm not sure if employers are able to claim a tax deduction for reportable fringe benefits in their business tax return like normal wages, but if they are and I claim the original fee then isn't it being claimed twice? Please help I'm very confused :(

• Answer:

  Yes You are doing work and study incurring fees. The fees are incurred in a separate part of your life from work. You need to claim as a deduction and show the payment from the employer to show as an income. The fees are a deduction and the same amount is shown as income from employer . You also need to show a note explaining all this.