MBA Tuition Deduction

Forum|Forum|6 years ago
August 29, 2019
2 replies
2 views

Can i deduct my MBA tuition and expenses since i am paying my entire masters degree out of pocket or is their any tax benefit that comes from this particular degree in respects to my taxes?

xmasbaby0

Level 15

https://ttlc.intuit.com/questions/3262984-who-is-eligible-for-the-lifetime-learning-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

Starting in tax year 2018 (the new tax law), employee job expenses (for regular W-2 employees), including education, are no longer deductible**. The self employed may still deduct tuition, on schedule C, for "educational expenses to improve your current job skills".

But you may be (probably are) eligible to claim the tuition credit (see the link at xnasbaby0's reply).

**Even when tuition was deductible, it was only a misc. itemized deduction subject to the 2% of AGI threshold.

Carl

Level 11

According to IRS Publication 970 at https://www.irs.gov/pub/irs-pdf/p970.pdf on page 39, the tuition and fees deduction expired at the end of 2017. So any out of pocket expenses paid are no longer deductible. However, the program may still ask you for your out of pocket expenses in order to figure any education credits you may qualify for, such as the American Opportunity Credit or the Lifetime Learning Credit. The AOC is limited to a maximum of $2,500 while the LLC is limited to a maximum of $2000. How much of a credit you qualify for depends on your AGI. The program will figure it accordingly.