Monday, April 21, 2014

Work-Related Educational Expenses

Education expenses required to maintain or improve skills relating to your current job, or required to meet legal or employer requirements, are considered work related educational expenses.  These expenses may be deductible as an itemized deduction.

Deductibility

To be deductible, the expenses must be for education for either of the following:

  • Improves or maintains skills required in your present job
  • Is required by your employer or legal regulations to keep your present salary, status, or job

If the education is required to meet the minimal educational requirements of your job, or is part of a program that can qualify you for a new trade or business, the expenses are not deductible.

You can deduct educational expenses if you are taking a temporary absence from your job and you are returning to the same type of work within one year or less, and the expenses meet all other requirements to be deductible.

You cannot deduct the same expenses that you are using to claim the tuition and fees deduction, American Opportunity credit or Lifetime Learning credit.

Qualifying Expenses

  • Tuition
  • Books
  • Supplies
  • Laboratory fees
  • Cost of research and typing a paper
  • Transportation
  • Travel expenses

For more information, see IRS Tax Topic 513 - Educational Expenses, and Chapters 11 and 12 of IRS Publication 970.


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