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Dhanalakshmi
New Member

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

I have paid MBA tuition fee for this year.
1. Can I show that in the deductions?
Will I get reimbursement for the same?
2. Due to the new tax reform bill what is the impact. If I pay my next year tuition fee in advance this year, will that help me to claim deductions for 2018 Tax when I file in 2019?
1 Best answer

Accepted Solutions
Hal_Al
Level 15

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs." This doesn't come up very often because most people come out better with the Lifetime Learning credit (LLC) or tuition & fees adjustment (“above the line” deduction), rather than taking an itemized deduction subject to the 2% of AGI Threshold. But you can do both if you tuition is more than $10,000. The first $10,000 of expenses qualifies you for the LLC and any excess can be claimed as employment expense.

http://www.forbes.com/sites/mattsymonds/2014/04/11/the-mba-and-the-taxman-claim-or-not-claim/#4e857f... Excellent article on deducting MBA

http://www.wsj.com/articles/good-news-for-m-b-a-students-tuition-is-now-more-deductible-1471013805 Recent (2016) court ruling

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4 Replies
Hal_Al
Level 15

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

Th free edition does not come with phone support
Hal_Al
Level 15

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs." This doesn't come up very often because most people come out better with the Lifetime Learning credit (LLC) or tuition & fees adjustment (“above the line” deduction), rather than taking an itemized deduction subject to the 2% of AGI Threshold. But you can do both if you tuition is more than $10,000. The first $10,000 of expenses qualifies you for the LLC and any excess can be claimed as employment expense.

http://www.forbes.com/sites/mattsymonds/2014/04/11/the-mba-and-the-taxman-claim-or-not-claim/#4e857f... Excellent article on deducting MBA

http://www.wsj.com/articles/good-news-for-m-b-a-students-tuition-is-now-more-deductible-1471013805 Recent (2016) court ruling

Hal_Al
Level 15

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

You do not literally get "reimbursed" for the tuition you paid. The LLC is 20% of the amount of qualified expenses paid, up to $2000. It is a non refundable credit and can only be used to reduce  an actual tax liability.
xmasbaby0
Level 15

Need advice on MBA tuition fee deductions. Please let me know I can talk to an advisor.

You cannot get the American Opportunity Tax Credit, as that is only available for undergraduate school for the first 4 years.  You may be able to get the Lifetime Learning Credit.  (It is not "reimbursement.")  Are you a dependent on anyone else's tax return?  All of us are still waiting to see exactly what the new tax changes will be, and when they will become effective.

**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.**
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