Community college classes to improve job skills

[pa10]

I attended welding classes at a local community college last year (and the year before). The class is not a minimum requirement for the job, but does improve my skills for my job. The class is neither part of an associates degree program nor a certificate program; however, I can sit for the certification exam after the last set of classes. Can I deduct the expense of the class?

[HelenC12]

You can't deduct the college courses as job-related expenses.

• Under the Tax Cuts and Jobs Act (TCJA) that Congress passed and President Trump signed into law on December 22, 2017, the unreimbursed employee expenses deduction has been suspended in tax years 2018 through 2025.

However, you may qualify to take the Tuition and Fees deduction or the Lifetime Learning Credit. 

• Enter your 1098-T form and TurboTax will figure out if you qualify.
• If you qualify, TurboTax will use the deduction or credit, whichever is better for you, with your tax situation.

[pa10]

The school does not supply 1098-T forms for this class. I did contact the school, and they indicated they do not make 1098-T forms for the types of classes I am taking. Must the school furnish this document to claim the expense? 

I filled out the TurboTax assessment and it is telling me I cannot claim the expense. I am confused with some of the questions (ie: is this class for a certification? Passing the class does not give you the certification, but the school requires you take all 3 of the welding courses they offer before allowing you to sit for the welding certification exam). So, this particular class lies in a gray area. Would this class be considered a class for a certification?

[KarenM90]

Yes, if you need to take those classes before you can take the exam, it is a class for certification. 

It would be very similar to any other class that required a test at the end of the class, in order to pass the class.  

Please go back through the questions in TurboTax.

Here are two articles regarding the Education credits and deduction:  Education Tax Credits  Tuition and Fees Deduction

[Opus 17]

If you are a W-2 employee, you can't deduct the expense as work-related training on your federal return.  Turbotax may allow you to list it anyway in case it is a state deduction for you.  In that case, you can deduct as a work expenses, classes you take to improve or maintain your job skills for your current job but you can't deduct classes to meet the requirements of a new job.

If you are self-employed filing schedule C, you can deduct as a work expenses, classes you take to improve or maintain your job skills for your current job but you can't deduct classes to meet the requirements of a new job.

You can't claim any tuition or college-related tax cuts at the federal level.  Both the lifetime learning credit and the American opportunity credit require that the school issue you a 1098 (this is a new requirement enacted in law in 2015).  If your school doesn't issue a 1098--for whatever reason--you can't claim the credits.  Your state may have a deduction or credit for higher education expenses.  In that case, you would have to check with your state to see if your school qualifies and what the requirements are for the deduction or credit.  If you find a college deduction in your state interview, you will probably see a "?" icon, click on it to read the rules for your state.