Goffredo
New Member

As a software development consultant, can I deduct any expenses for getting a graduate school degree ABROAD in Computer Science ?

I am a US citizen and had a sole proprietor business developing software in the US; then, I finished an undergraduate degree in Computer Science in the US, and now continue to make income developing software in a (now differently-named) sole proprietor business in the US.

I would like to attend a tri-lingual graduate school in Italy for two years, for a Master's Degree in Computer Science to increase my value as a software professional, and so that my sole proprietorship company in the US can tap into the European and non-English speaking computer science markets.

Can I take any deductions on my sole proprietorship's Schedule C for this?

  • Fees for application, document translation, fees paid to Italian Consulate
  • Tuition, room & board, books, etc
  • Travel, shipping, any facet of relocation from US to Italy for 2 years, and back
  • Etc

Thank you!

IreneS
Intuit Alumni

Education

Yes, as long as the education is considered "qualifying work-related " education.  This means that the education "maintains or improves skills needed in your present work." 

If it will also qualify you for a new trade or business, it is not considered qualifying work-related education and is not deductible.  It sounds like the coursework you intend to pursue would be considered related to your present job.

For more information on deducting education expenses, see IRS Pub. 970, Tax Benefits for Education.  The discussion of qualifying work-related education starts on page 58.  Page 71 of this publication discusses the expenses that can be deducted.


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Goffredo
New Member

Education

Thank you for your prompt answer!  I also discovered the following article online that provided some specific examples of both personal and business deductions for studying abroad.  Maybe this would help others with the same question.

Slater, Robert, et al.  "Deductibility of Expenses for Studying Abroad." The Interdisciplinary Journal of Study Abroad Volume XXVI.  Fall 2015: pp 136-143.

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