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evlemus21
New Member

Hello. How do we include expenses related to continue education units.

 
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Hal_Al
Level 15

Hello. How do we include expenses related to continue education units.

Regular W-2 employees are no longer (since 2018) allowed to deduct job expenses, including education. If you're self employed, you can deduct the cost, as a business expense, on schedule C.

If the courses were taken at a recognized college or vocational school (educational institutions eligible to participate in the student aid programs administered by the Department of Education),  you can, instead,  take  the Lifetime Learning Credit (but usually not the American Opportunity credit).

 

The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not.  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 a business 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).

 

To claim the education credit, 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses and Scholarships (1098-T)

 

To claim it as a business expense, enter it as other expenses. There, you can label it, for example, continuing education or business related education. 

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