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jsalengo
New Member

Can I deduct MBA tuition as a business expense instead of an education expense?

I am getting my MBA to increase my skills for my current job, and my board is fully encouraging and supportive. But they don't have a tuition reimbursement policy. This option appears to result in a much better refund.
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1 Best answer

Accepted Solutions
ChrisJ
New Member

Can I deduct MBA tuition as a business expense instead of an education expense?

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.

If you're pursuing a degree that maintains or improves skills needed in your present work, you may be eligible to deduct the following expenses: 
  • Tuition, books, supplies, lab fees, and similar items.

  • Certain transportation and travel costs.

  • Other education expenses, such as costs of research and typing when writing a paper as part of an educational program.

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3 Replies
ChrisJ
New Member

Can I deduct MBA tuition as a business expense instead of an education expense?

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.

If you're pursuing a degree that maintains or improves skills needed in your present work, you may be eligible to deduct the following expenses: 
  • Tuition, books, supplies, lab fees, and similar items.

  • Certain transportation and travel costs.

  • Other education expenses, such as costs of research and typing when writing a paper as part of an educational program.

Can I deduct MBA tuition as a business expense instead of an education expense?

The person replying to this is incorrect. They are quoting an outdated version of the IRS publication. 

 

Tuition and fees for school ARE NOT an income tax deduction - this change occurred starting for tax year 2018 thanks to the TCJA. There are no longer deductions for unreimbursed employee expenses. 

Can I deduct MBA tuition as a business expense instead of an education expense?

The prior answer was for several years ago.  This is a new forum layout. Some posts that have June 2019 dates are really older posts from the old forum that got moved over. So they might be for prior years and not current info. When they migrated over the dates got changed to June 2019. And the screen shots got deleted. 

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