If I am a self-employed piano teacher, is further education deductible?

[student18]

If I am pursuing a masters or graduate diploma program in music, can I deduct the program tuition? It does not qualify me for a new trade/business but enhances my skills for my current position.

The school program also issued a 1098-T.

[DanielV01 · Accepted solution]

It can be claimed as a business expense if it is not qualifying you for a new career, but is enhancing your abilities in your current career.  In your situation you may get a better tax break claiming this expense against your business income than as a credit.

Because, it can also be claimed for the Lifetime Learning Credit.  This FAQ provides more information:  https://ttlc.intuit.com/replies/5358151

[student18]

Thanks. Should I still include my 1098-T information in my tax return then? Since I will be claiming it as an expense rather than going for the credit.

[DanielV01]

Your 1098-T should be showing the tuition.  However, for the purpose of the expense you can claim related expenses as well, including your travel, materials, parking, etc. to get to the training.  If you received any grants or scholarship, you can include that portion as "other income" on your Schedule C so that the scholarship is subtracted from the expenses you are claiming.

[student18]

I meant should I still enter in my 1098-T information when I file? Or simply leave it empty and claim it as a deduction?

[DanielV01]

If you claim as a deduction, you can't claim the credit also.  So, correct, you do leave that area blank in this case.