23 Sep Education Expenses – Are They Tax Deductible?
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in Child Tax, Deductible Expense, Dependent, Disallowed Expenses, Family, Student Loan, Tax Credit, Tax Deductible Expenses, Tax Relief
According to IRS Publication 970, Tax Benefits for Education, questions exist to help determine if education expenses are tax deductible. These questions include:
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Is the expense associated with the education ‘work related’? It must be to be deductible.
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Is the education in question required by your employer or the law to keep your present salary, status, or job? If so the expense is deductible.
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Does the education maintain or improve skills needed in your present work? If so the expense is deductible.
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Does the education requirement serve a bonafide business requirement of your employer? If so the expense may be deductible.
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Is the education needed to meet the minimum educational requirements of your present trade or business? If so the expenses is NOT deductible.
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Is the education part of a program of study that will qualify you for a new trade or business? If so then the expenses is NOT deductible.