Does anyone have an issue with a teacher taking the tuition paid for an online Masters on Schedule A in the Job Expenses Subject to 2% category?
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Better choices?
Wouldn't the Lifetime Learning credit be a better choice?
And...if they don't qualify, why not a tuition deduction, which is not subject to the 2% ?
My two cents.... -
Education expense as employee expense?
1. Is the MA degree a specific job requirement? Will it maintain or improve skills required for the TP's current employment?
2. If claimed as a "2106" type expense, will it create an AMT issue for the taxpayer?
3. Is an ordinary, and necessary expense?
4. Have you reviewed TTB 4-25 and 4-26 special rule for teachers?
5. In some cases, the additional "teacher rules" plus transportation costs may make such a itemized deduction better than the educational credits.
6. Factor in effect on State income tax, if any, including effect of tuition and fees deduction which may lower state taxable income or provide a credit.Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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