Do extended education classes count towards acquiring or improving your job skills if taken to fulfill prerequisite requirements for a masters program and new future job?

[Pluto33]

My wife is taking classes (not even halftime) to fulfill perquisites to apply for a master program. Do extended education classes count towards "acquiring or improving your job skills" to make you eligible for the "lifetime learning credit" if taken to fulfill prerequisite requirements for a masters program that will lead to a new job in the future?

[Coleen3]

No. Job skills are present skills required in your present job. However, that is only half of that qualification. She is eligible.

Who is an eligible student for LLC?

To be eligible for LLC, the student must:

• Be enrolled or taking courses at an eligible educational institution
• Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills
• Be enrolled for at least one academic period* beginning in the tax year

[Pluto33]

So the 8 course prerequisite program she is in is not part of the degree program. But you are saying that since they are higher education courses it still counts? On the IRS website under Qualified Learning Expenses for the Lifetime Learning Credit it only says: "The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills." Sorry I'm a little confused still.

[Coleen3]

Since I am not familiar with extended courses, does it not fall into one of these two categories?  " other recognized education credential"? "PART OF a postsecondary degree program". The real intenion here is to prevent someone going to a college and taking a frivilous class and passing it off as education.

[Pluto33]

Preventing frivolous classes counting towards an education credit makes sense. Can you point me to where you got the above list of eligibility factors? I would like to take a look as it is different than what I saw on the IRS website.

[Coleen3]

https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc

[Pluto33]

Thank you. Lastly, you said that "Job skills are present skills required in your present job," but in the link you provided, the IRS doesn't seem to define job as present or future. Where can I see that information as well?

[Coleen3]

I don't have the reference for this. I have had it in my library for years. While it doesn't exactly address your question, it does spell it out from another angle.

Qualifying Work-Related Education
You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

• The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
• The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:

•  Is needed to meet the minimum educational requirements of your present trade or business, or
• Is part of a program of study that will qualify you for a new trade or business.

You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree.

[Pluto33]

Thank you I appreciate the info! Maybe the fact that they go into so much detail, in terms of what qualifies as "work-related education" is telling in the fact that "getting or improving job skills" could relate to current or future work since it is not describe. Thanks again.