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If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

My wife took a course at Cuyahoga Community College (Tri-C), but it was for a potential job in a different industry. In the past I myself have taken classes and received tax credits, but the courses always related to my current industry.

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1 Best answer

Accepted Solutions
Karen1209
New Member

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

The IRS states that to be eligible for a deduction, the expenses must be in the same field.  The Lifetime Learning Credit can be used to gain skills.

To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.

Although the education must relate to your present work, education expenses incurred during temporary absence from your job may also be deductible. After your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.

For the American Opportunity Credit, IRS eligibility:

For the American opportunity tax credit, an eligible student is a student who: (1) is enrolled in a program leading toward a degree, certificate or other recognized post-secondary educational credential; (2) has not completed the first four years of post-secondary education as of the beginning of the taxable year; (3) for at least one academic period is carrying at least ½ of the normal full-time work load for the course of study the student is pursuing; and (4) has not been convicted of a felony drug offense. 

For the Lifetime Learning Credit:

To be eligible for LLC, the student must:

  • Be enrolled or taking courses at an eligible educational institution
  • Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills
  • Be enrolled for at least one academic period* beginning in the tax year

https://ttlc.intuit.com/replies/3301953

[Edited 3/6/18|1:03PM]

View solution in original post

5 Replies
Karen1209
New Member

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

The IRS states that to be eligible for a deduction, the expenses must be in the same field.  The Lifetime Learning Credit can be used to gain skills.

To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.

Although the education must relate to your present work, education expenses incurred during temporary absence from your job may also be deductible. After your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.

For the American Opportunity Credit, IRS eligibility:

For the American opportunity tax credit, an eligible student is a student who: (1) is enrolled in a program leading toward a degree, certificate or other recognized post-secondary educational credential; (2) has not completed the first four years of post-secondary education as of the beginning of the taxable year; (3) for at least one academic period is carrying at least ½ of the normal full-time work load for the course of study the student is pursuing; and (4) has not been convicted of a felony drug offense. 

For the Lifetime Learning Credit:

To be eligible for LLC, the student must:

  • Be enrolled or taking courses at an eligible educational institution
  • Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills
  • Be enrolled for at least one academic period* beginning in the tax year

https://ttlc.intuit.com/replies/3301953

[Edited 3/6/18|1:03PM]

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

That's helpful, but what is meant by "improving one's job skills"? For example, my wife is an administrative assistant but took an introductory C# programming course to add a skill for a POTENTIAL job in the tech industry. Technically, programming is a "job skill" for that industry, but one can argue it's not for an administrative assistant.

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

FYI, I'm still unclear regarding the above, thanks.
Karen1209
New Member

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

@james.tasse
Please see update.

If I have associates degree, is non-degree community college tuition (for courses in a different industry than I currently work in) eligible for tax credits/deductions?

ok, thanks. If anyone can't tell just by the bolding, the answer is essentially no because my wife took a course to prepare for a potential job in a different industry.
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