Hi, I took online classes through Udacity's Machine Learning Engineer Nanodegree program, and spent $2392 in 2016 on them ($299/mo for 8 months). These classes are relevant to my career and actually helped me get a better, higher-paying job. Are these classes tax-deductible?
Thank you.
Yes, education expenses you pay related to your present work as an employee may be deductible as a miscellaneous itemized deduction subject to the 2% rule.
To be deductible, your expenses must be for education that either maintains or improves your job skills, or is required by your employer or by law to keep your salary, status or job. Expenses to learn a new trade or job aren't deductible.
Get more details on deductions based on the 2% rule.
Job-related expenses are reported on Form 2106 (Employee Business Expenses).
If you land on the Job-Related Expenses Summary screen instead, you can either select Edit (for an existing job) or Add Another Occupation (for a new one).
Tip: If the only work-related use of your car is commuting back and forth between your home and main workplace, don't enter any vehicle mileage or expenses. The IRS doesn't let employees deduct commuting costs.