Education Tax Credit for noncredit professional courses

[mamir_latif]

Hi there,

Can we claim the education tax credit from IRS for noncredit professional courses that we took from an eligible institute with or without employer assistance?

Thanks 

[ShirlynW]

It depends. Qualified educational expenses do not include expenses that relate to any course of or other educational that involves sports, games, or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student’s degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. You may qualify for the Lifetime learning credit.

For more information

[mamir_latif]

Hi there,

Yes, these noncredit professional courses are taken to improve the jobs skills which were assisted by the employer. 

Follow up question,

To claim the credit of these, what documents or forms will be used? for example 1099 etc....

To claim the credit of these, do we need itemized deductions or standard deduction would suffice? 

Thanks 

[AbrahamT]

So here's my question to you. Did you get a Form 1098T from a college or an institution for the amount of money you paid towards these courses? This credit is called the American Opportunity credit and is a refundable credit up to 40% of the amount after the full tax liability is wiped out upto a maximum of 1,000. It shows up on Line 39 on the 1040 pg. 2. All this information should be  entered under Deductions/Credits / Education in the Turbotax software and the program will calculate the optimum benefit.

[mamir_latif]

Hi there, 

No i did not get the Form 1098T from a college as they said this "We charge a program fee, not tuition (which is for credit programs).   You were also never assigned a student TIN"

Thanks 

[KrisD15]

In order to clarify, were the expenses paid for by your employer? 

If yes, you would not also claim the expenses.

"Yes, these noncredit professional courses are taken to improve the jobs skills which were assisted by the employer. "

[mamir_latif]

Hi there,

Yes, the expenses paid for by the employer, with the condition if I leave the job in 2 years, I have to pay back the employer. 

Thanks 

[MarilynG1]

If your employer paid for your education, they may have already included the amount in your wages reported on your W-2.  Check your paycheck info to verify, or ask your employer.

You cannot claim the expenses if you did not pay them, but if you leave the job and have to repay the benefit that was included on your W-2, you will be able to Amend Your Return to claim the Education Expenses in that year for the amount you had to repay. 

Click this link for details on Repayment of Employer Education Benefit. 

[Hal_Al]

You may not claim the tuition credit if you were reimbursed or expect to be reimbursed by your employer with tax free assistance.  If for  some reason, the reimbursement falls thru or you have to pay it back, you deal with that by filing an amended return in the future. 

By law your employer can only give you $5250 maximum, tax free.  If you got more than $5250, the amount above $5250 is usually already included in box 1 of  your w-2.  The excess  is considered your after tax money and that amount can be used  to claim the tuition credit.

The course you took is not eligible for the more generous American Opportunity credit.  It is, most likely, eligible for the Lifetime Learning Credit (the portion paid by  your after tax money).