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For my MBA tuition, where do I put in the work-related education expenses?

 
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Hal_Al
Level 15

For my MBA tuition, where do I put in the work-related education expenses?

In TurboTax enter at:
Federal Taxes Tab

Deductions & Credits

 -I'll choose what I want to work on

-Scroll down to:

--Employment Expenses

---Job related expense

You can also deduct the mileage if you go directly from your work site to the school. You cannot deduct the mileage from school back to home, unless the schooling is considered temporary (expected to last less than 1 year and actually does last less than 1 year).

 The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs." This doesn't come up very often because most people come out better with the Lifetime Learning credit (LLC) or tuition & fees adjustment (“above the line” deduction), rather than taking an itemized deduction subject to the 2% of AGI Threshold. But you can do both if you tuition is more than $10,000. The first $10,000 of expenses qualifies you for the LLC and any excess can be claimed as employment expense.

http://www.forbes.com/sites/mattsymonds/2014/04/11/the-mba-and-the-taxman-claim-or-not-claim/#4e857f... Excellent article on deducting MBA

http://www.wsj.com/articles/good-news-for-m-b-a-students-tuition-is-now-more-deductible-1471013805 Recent (2016) court ruling

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1 Reply
Hal_Al
Level 15

For my MBA tuition, where do I put in the work-related education expenses?

In TurboTax enter at:
Federal Taxes Tab

Deductions & Credits

 -I'll choose what I want to work on

-Scroll down to:

--Employment Expenses

---Job related expense

You can also deduct the mileage if you go directly from your work site to the school. You cannot deduct the mileage from school back to home, unless the schooling is considered temporary (expected to last less than 1 year and actually does last less than 1 year).

 The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs." This doesn't come up very often because most people come out better with the Lifetime Learning credit (LLC) or tuition & fees adjustment (“above the line” deduction), rather than taking an itemized deduction subject to the 2% of AGI Threshold. But you can do both if you tuition is more than $10,000. The first $10,000 of expenses qualifies you for the LLC and any excess can be claimed as employment expense.

http://www.forbes.com/sites/mattsymonds/2014/04/11/the-mba-and-the-taxman-claim-or-not-claim/#4e857f... Excellent article on deducting MBA

http://www.wsj.com/articles/good-news-for-m-b-a-students-tuition-is-now-more-deductible-1471013805 Recent (2016) court ruling

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