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bobyan
New Member

How to deduct Part-Time MBA tuition expenses on California Tax Return?

I have heard from tax professors that this you can still deduct MBA costs on your California state taxes using miscellaneous deductions.  Any idea how to do that in Turbotax?

5 Replies
KrisD15
Employee Tax Expert

How to deduct Part-Time MBA tuition expenses on California Tax Return?

The Tuition and Fees deduction was eliminated for tax years 2018 and later on the Federal return, but the California return was allowing it as an adjustment. 

THEN Congress changed its mind and the Tuition and Fees was reinstated, retroactive. (So if you can take it for tax year 2018, you might consider amending 2018)

You can enter the expenses in the "Education" section under Deductions & Credits on the Federal return. 

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bobyan
New Member

How to deduct Part-Time MBA tuition expenses on California Tax Return?

Just so it’s absolutely clear - you are saying California residents can not deduct tuition and fees for tax year 2019?

 

Can you please provide a link to this in the tax code?

 

Thank you!

ThomasM125
Employee Tax Expert

How to deduct Part-Time MBA tuition expenses on California Tax Return?

California residents can deduct tuition and fees in 2019. Since it is allowed on the federal return and no adjustment for it is mentioned in the instructions for California form 540, it is also allowed on the California return.

 

Here are the instructions to form 540:

 

https://www.ftb.ca.gov/forms/2019/2019-540-booklet.html

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mlilinshtein
Returning Member

How to deduct Part-Time MBA tuition expenses on California Tax Return?

How would i file this in my state taxes for turbo tax software. I made my $60k tuition as an Other Adjustments to Income - Subtraction. Is that the correct way to do it?

MarilynG1
Employee Tax Expert

How to deduct Part-Time MBA tuition expenses on California Tax Return?

@mlilinshtein Enter your Education Expenses in the Education Section of your Federal return.  You may qualify for a Lifetime Learning Credit or Tuition and Fees Deduction.

 

You don't have to be a full-time student or have a 1098-T to claim these expenses. 

 

This will carry over to your California return, so you will not need to make adjustments there.

 

Click this link for more info on Education Credits

 

 

 

 

 

 

 

 

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