How to Claim Deductions for Education Expenses

Male: Can I claim deductions for all my education expenses?
Art: Education expenses, you’re gonna have to determine one basic fact. Are the education expenses that you are incurring to support your current job or to enhance your present position. If the education expenses qualify you for new job, the answer is you get no deduction. But, you may get either a hope credit or a lifetime learning credit as a credit on the tax return but those have adjusted gross income limitations that apply. Now if the expenses do not qualify you for a new job, but they’re merely to support your present position, if you are self employed, you might deduct those expenses on schedule C. If you are a W2 employee, then those expenses would be deducted as miscellaneous itemize deductions. In any event what you need to do is compare whether you’ll get the deduction or not and whether you’re eligible for either the whole credit or the lifetime learning credit. But again, any tax program that you do are gonna ask you this questions, and they will make a determination for you in the program as to where you may be better off. And again, bear in mind that the credits have adjusted gross income limitations. So you look at the bottom line on page one of the 1040, when you’re finish with it, and depending upon how high that number is, you may not be eligible for the credits. So the only alternative left is a deduction, but the deduction is only there if it is to enhance your present position not to qualify you for a new job.


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