Is paying for a master’s degree tax deductible ?

[link8822]

While I don't belive the actual tuition is deductible in US, there was a "lifelong learning" tax credit for people pursuing further education.  I'm not sure if that still exists under the Trump administration but hope this helps in searching for your answer.

[xmasbaby0]

@nicaregalada 

You are actually asking about the Lifetime Learning Credit--which still exists.

https://ttlc.intuit.com/community/credits-and-deductions/help/what-expenses-qualify-for-the-lifetime...

https://ttlc.intuit.com/questions/3262984-who-is-eligible-for-the-lifetime-learning-credit

[xmasbaby0]

https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...

https://ttlc.intuit.com/questions/1901526-what-s-the-income-limit-for-the-american-opportunity-and-l...

https://ttlc.intuit.com/questions/1901526-what-s-the-income-limit-for-education-tax-credits

QUALIFIED EDUCATION EXPENSES

https://ttlc.intuit.com/questions/1899852-what-are-considered-qualified-education-expenses

https://ttlc.intuit.com/questions/2976047-what-are-examples-of-education-expenses

[Anonymous_]

@nicaregalada You might want to review the information available at the following link, including the questionnaire in the embedded link on the IRS web site.

https://www.irs.gov/taxtopics/tc513

[Carl]

What you personally pay for education is just flat out not a deductible expense on any tax return really. However, you may qualify for a number of education credits such as the LIfetime Learning Credit, or what's called a "tuition credit" where you can claim a portion of your tuition. If you work it through the Education section under the Deductions and Credits tab, the program will walk you through the process of determining what's best for you.

[Anonymous_]

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@Carl wrote:

What you personally pay for education is just flat out not a deductible expense on any tax return really. 

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I take it you "just flat out" did not read the information on the IRS web site at the link below.

https://www.irs.gov/taxtopics/tc513

[Hal_Al]

Q.  Is paying for a master’s degree tax deductible ?

A. Simple answer: Yes.

But taxes aren't simple.  There are two alternative education tax breaks available : the Tuition and Fees Deduction (TFD) and the Lifetime Learning Credit (LLC).  A third and more generous benefit, The American Opportunity Credit, is not available to grad students.

The TFD is technically an adjustment to income ("above the line deduction"). That is, you may claim it, even if you use the standard deduction (you do not have to itemize deductions).  It is limited to a $4000 deduction. 

https://www.savingforcollege.com/article/tuition-and-fees-deduction

The LLC is a nonrefundable  tax credit equal to 20% of your qualified expenses, up to $10, 000 ($2000 max LLC).  Usually the LLC is better than the TFD. https://www.savingforcollege.com/article/lifetime-learning-tax-credit .  A tax credit directly reduces your calculated tax liability and is not just a deduction from income.

Prior to 2018, education costs were deductible as a job expense, if related to your work, but only as an itemized deduction, subject to the 2% of AGI rule.  W-2 employees may no longer deduct job expenses.  The self employed may  still deduct business related education, directly on Schedule C.