Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Aug 29, 2019 11:18:57 AM

MBA Tuition Deduction

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?

0 3 1611
3 Replies
Level 15
Aug 29, 2019 12:19:25 PM
Level 15
Sep 2, 2019 5:18:58 AM

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.

Level 15
Sep 2, 2019 10:53:43 AM

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.