It is not considered by the IRS. A man owed almost $900,000 of income tax debt and sought to get into an installment payment plan with the IRS for $3,000 a month. On his installment agreement request, he listed about $24,000 of monthly expenses which included regular contributions of 10% of his income to his church.
The collections officer refused to allow the contributions to the church as an additional expense. The taxpayer objected on religious and spiritual grounds, but the Tax Court ruled that the officer acted reasonably.
College tuition payments are also generally not taken into account in determining the amount of your installment agreement with the IRS. In fact, the IRS will often treat tuition funds as assets that are available to repay your tax bill.