Tuition Deduction as Job Expense

[curiousgeorge]

Can tuition be deducted as Job Expense? Client can't use life time education credit due to income phase out.

[Lion]

Job Related?

Did the education maintain or improve his skills for his current job? 2106

[curiousgeorge]

Improve Skill Set for Promotion

The client hopes to get promoted after MBA education. Also, his current project requires marketing related skills that he doesn't have. His education helps.

[Bill Tubbs]

Tuition

>>Can tuition be deducted as Job Expense?<<

Yes! Do it all the time with teachers.

>>The client hopes to get promoted after MBA education. Also, his current project requires marketing related skills that he doesn't have. His education helps.<<

Courses for his current position are deductible on F2106. Courses to try to get promoted (i.e. a different job) are NOT deductible.

[curiousgeorge]

2106 Deduction vs. AGI

How much can he deduct under f2106 before it's too much vs. AGI?

[veritas]

Curious George

best to ask The Man with The Yellow Hat.

[curiousgeorge]

How do I get his/her reply to this question?

[Jesse]

best to ask The Man with The Yellow Hat.

Is he still around?

[curiousgeorge]

It doesn't seem so.

[veritas]

The Man With the Yellow Hat

You can find him at Quickfinder.com

Sometimes he goes by the name OldJack.

[Jesse]

You can find him at Quickfinder.com

Sometimes he goes by the name OldJack.

I'd try the library! Good night all - be back in the AM!

[gkaiseril]

[QUOTE=Bill Tubbs;59009
>>The client hopes to get promoted after MBA education. Also, his current project requires marketing related skills that he doesn't have. His education helps.<<

Courses for his current position are deductible on F2106. Courses to try to get promoted (i.e. a different job) are NOT deductible.[/QUOTE]

I believe the wording is "new profession" not "new job". And what about the situation where an individual is promoted while obtaining an MBA, doe the dedutcion stop at the time of the promotion?

And how many cases of employees getting MBA's and moving to new positions has the IRS won?

[curiousgeorge]

If the client get promoted while obtaining MBA, from that point on, does it make him eligible for the deduction since his education helps improving his management?

[veritas]

Education expenses

are deductible even if they lead to a degree if- From TTB

1) The education maintains or improves skills required for the
taxpayer’s present work.
2) The education is required by the taxpayer’s employer or by law.
Exception: Education is not deductible, even though one or both
of the above tests are met, if the education:
1) Is needed to meet the minimum educational
requirements to qualify for the taxpayer’s
line of work, or
2) Will lead the taxpayer to qualify for a new
line of work. This is true even if the taxpayer
does not intend to enter that line of work.

Education required by employer or by law. Once minimum
educational requirements are met for a job, an employer or the
law may require additional education. This additional education
is deductible if all of the following requirements are met:
• It is required to keep the taxpayer’s present salary, status, or job.
• The requirement serves a business purpose of the employer.
• The education is not part of a program that will qualify the taxpayer
for a new trade or business.
If a taxpayer receives more education than required by an employer
or by law, the additional education can qualify as workrelated
education only if it maintains or improves skills required
for a taxpayer’s present line of work. This could include refresher
courses, courses on current developments, and academic or
vocational courses.