Can 1099 independent contractor claimed as dependent on parents’ return deduct grad school tuition as business expense if parents didn’t claim any education credits?

[Bsch4477]

If your education qualifies you for a different or new business you cannot deduct it.

[marinagur]

The education is in the same field as existing bachelor’s, but might lead to a teaching degree in addition (dual major).

[Coleen3]

It has to be in the same field as what you were paid to do on the 1099-Misc.

[marinagur]

Education pursued is in the same field as the work (1099-misc). Does it master if parents claimed the student as dependent, even though did’t qualify for any education tax breaks?

[Coleen3]

No. Since you had income on Schedule C, you are entitled to deduct expenses. Since they did not take a credit for your education, you can use it as a business expense if you meet the qualifications below.

[marinagur]

If grad degree is in interpreting, but could lead to teaching even if teaching career is not pursued after graduation, does it disqualifies as business related education expense in enterpreting field?

[Coleen3]

The bottom line is this: If your 1099-Misc was for teaching, your education expenses "maintains or improves skills needed in your present work" it is deductible. If your 1099-Misc was for interpreting and your education expenses, "maintains or improves skills needed in your present work", it is deductible. It is straightforward.

[marinagur]

Thanks

[Coleen3]

Qualifying Work-Related Education

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

• The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
• The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:

•  Is needed to meet the minimum educational requirements of your present trade or business, or
• Is part of a program of study that will qualify you for a new trade or business.