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marinagur
New Member

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?

 
9 Replies
Bsch4477
Level 15

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?

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

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?

The education is in the same field as existing bachelor’s, but might lead to a teaching degree in addition (dual major).
Coleen3
Intuit Alumni

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?

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

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?

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
Intuit Alumni

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?

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
New Member

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?

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
Intuit Alumni

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?

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
New Member

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?

Thanks
Coleen3
Intuit Alumni

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?

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.

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