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Yes, all of the above.
Your employer is allowed to reimburse you (or directly pay) up to $5250 of tuition tax free. Any additional reimbursement is required to be treated as taxable income on your W-2.
Any tuition you pay out of pocket (or with taxable reimbursement) is eligible for the Lifetime learning Credit (LLC) or Tuition and Fees deduction, but not both. The LLC is usually best for most people. It takes $10,000 of paid tuition to get the maximum LLC.
If you pay more than $15,250 of tuition in a year, the excess MAY be eligible for the Business Deduction for Work-Related Education. The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. 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. But, it is only an itemized deduction subject to the 2% of AGI Threshold.
Yes, all of the above.
Your employer is allowed to reimburse you (or directly pay) up to $5250 of tuition tax free. Any additional reimbursement is required to be treated as taxable income on your W-2.
Any tuition you pay out of pocket (or with taxable reimbursement) is eligible for the Lifetime learning Credit (LLC) or Tuition and Fees deduction, but not both. The LLC is usually best for most people. It takes $10,000 of paid tuition to get the maximum LLC.
If you pay more than $15,250 of tuition in a year, the excess MAY be eligible for the Business Deduction for Work-Related Education. The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. 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. But, it is only an itemized deduction subject to the 2% of AGI Threshold.
Do you meet this if it's not reimbursed by the company?
Work-Related Education
You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. (1) It maintains or improves skills required in your present work. (2) It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.
https://www.irs.gov/pub/irs-pdf/p529.pdf
Also see:
Your employer should check with their accountant re their ability to deduct.
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