I do not qualify for the usual tuition credits due to my income, but after doing some reading, including on the IRS website, I believe I qualify to deduct my executive MBA tuition as a business expense. I'm not sure what to enter in the box in turbo tax however. Do I put the total cost of tuition? Tuition minus employer reimbursement? Tuition minus 2% AGI? I'm not certain what calculations I need to do and what turbo tax will do for me. Thanks.
Enter both pieces, tuition paid and reimbursement received. The Turbo Tax program will calculate the 2% adjustment.
Enter your education expenses in the Employment Expenses of Turbo Tax under Job-related Expenses. Report them as education expenses. Use the gross amount you paid for tuition. A few screens later, you will enter the reimbursement you received.
The IRS allows including tuition expense as a business expense if you meet the requirements. IRS Publication 970 states "You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.
-The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
-The education maintains or improves skills needed in your present work.
However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:
-Is needed to meet the minimum educational requirements of your present trade or business, or
-Is part of a program of study that will qualify you for a new trade or business.
You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree."
Enter both pieces, tuition paid and reimbursement received. The Turbo Tax program will calculate the 2% adjustment.
Enter your education expenses in the Employment Expenses of Turbo Tax under Job-related Expenses. Report them as education expenses. Use the gross amount you paid for tuition. A few screens later, you will enter the reimbursement you received.
The IRS allows including tuition expense as a business expense if you meet the requirements. IRS Publication 970 states "You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.
-The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
-The education maintains or improves skills needed in your present work.
However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:
-Is needed to meet the minimum educational requirements of your present trade or business, or
-Is part of a program of study that will qualify you for a new trade or business.
You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree."