Education Costs - Deductibility

Posted by Andy
Educational expenses are usually deductible, but how you should deduct them is another matter that is more difficult.

If the education maintains or improves your skills in your current job or it is required by your employer to keep your salary, status, or job, then you can deduct them as a business expense (Either on your corporate return, Sch. C, or Sch. A as a misc. itemized deduction).

If the education is to meet the minimum educational requirements to qualify for a trade or business, or if it is part of a program of study to qualify for a new trade or business, then it can't be deducted as a business expense. Instead it should be deducted with the tuition and fees deduction or the various tuition credits. Note that only tuition and fees qualify for these deductions though.

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