I received a 1098-T and am self employed as a sole proprietor, do I specify the education expense on schedule C or file for the tuition credit?

[LoveableMusician]

Since I received a 1098-T from UC Berkeley for taking an extension course applicable to my business. It seems that I must complete the detail in Turbo Tax for receipt of a 1098-T. But if I do that and deduct it in line 27a since this is business expense for the class I took and paid for with no reimbursement (again, I am self-employed), then I am entering the same deduction twice. Since, that cannot be correct as the same deduction can only appear in one place, I believe that place should be line 27a in schedule C and not through form 8917. If so, I believe I need to delete the 1098-T data that I entered into TurboTax.

In addition, another institution, Stanford Continuing Studies did not provide a 1098-T and they claim on their website that they do not need to do so since this class and the fees paid is for professional development rather than an undergraduate or graduate course. But TurboTax allows me to generate a 1098-T, even though I didn't get one. Again, I believe the cost of the Stanford course also belongs on line 27a in schedule C, and not through form 8917. And, that I should delete the 1098-T data entered into TurboTax.

What are the correct way to deduct these business expenses for professional development applicable to my business?

[Zbucklyo · Accepted solution]

If both courses were for professional development related to your current career, they can and should be deducted on Schedule C.  If you elect to deduct them there, do not take any education credits.