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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
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
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.
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