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v-andarcia
New Member

Hi. I am a physician doing a fellowship 2 years of online classes and paid $4000 in tuition and wondering if I can get a tax deduction for continuing education?

 
3 Replies
DavidD66
Employee Tax Expert

Hi. I am a physician doing a fellowship 2 years of online classes and paid $4000 in tuition and wondering if I can get a tax deduction for continuing education?

Perhaps.  To be deductible, your education costs must either be required by your employer or by law to keep your job, or it must improve your skills you use at your current job. For example, if you have your own medical practice and are required to take certain continuing education courses each year, those costs qualify because they are required to keep your current job. Similarly, if you own a car repair shop and you attend classes to learn about maintenance on new models, that course improves your skills so it is also deductible.  

 

You cannot deduct the cost of any education that qualifies you for a new trade or business or is needed to meet the minimum requirements for your business, even if it meets either or both of the test. For example, attending law school would qualify you for a new trade -- being a lawyer -- so you can't deduct those costs even if you won't practice law. Similarly, if you need to take an exam to become a certified public accountant, you cannot deduct costs of preparing for the exam because it is a minimum standard for you to meet.

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xmasbaby0
Level 15

Hi. I am a physician doing a fellowship 2 years of online classes and paid $4000 in tuition and wondering if I can get a tax deduction for continuing education?

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

Hi. I am a physician doing a fellowship 2 years of online classes and paid $4000 in tuition and wondering if I can get a tax deduction for continuing education?

The other reply refers to claiming education costs as a job expense. That is no longer allowed (starting in 2018)  for W-2 employees (it was only an itemized deductions subject to the 2% of AGI threshold , even in the "old days").  The self employed can still take a direct job expense deduction.

 

But, f the courses were provided by an "eligible institution"** , you can claim either the Lifetime Learning Credit (LLC) or Tuition and Fees Deduction (TFD). Turbotax (TT) will select the best one, for you.

 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

 

**To be eligible for the tuition credits or tuition & fees deduction, the course must be taken at "an eligible institution". The school should be able to tell you if it is an eligible educational institution. In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. If they issue a 1098-T they are probably an eligible institution.

Enter your school at the link below, to see if it's on the dept. of education list.

https://fafsa.ed.gov/FAFSA/app/schoolSearch?locale=en_EN 

Rule of thumb: if you have to ask, your school is not an eligible institution.

 

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