Tax Trails - Are Your Work Related Educational Expenses Deductible?
Your unreimbursed educational expenses qualify.
Deductible expenses include:
- Tuition, books, supplies, lab fees, and similar items
- Certain transportation and travel costs
- Other education expenses, such as the cost of research and typing when writing a paper
No double benefit is allowed.
- You cannot deduct either of the following:
- Expenses you benefit from under any other provision of the law
- Expenses paid with tax-free scholarship, grant, or employer-provided educational assistance
Deducting as a business expense:
- Self-employed persons - must use the appropriate form to report your business income and expenses (generally Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship), Schedule C-EZ (Form 1040), Net Profit From Business (Sole Proprietorship), or Schedule F (Form 1040), Profit or Loss From Farming).
- Employees - include this amount with your deduction for any other employee business expenses on Schedule A (Form 1040), Itemized Deductions, or Schedule A in Form 1040NR, U.S. Nonresident Alien Income Tax Return. This deduction is subject to a 2% limit of your adjusted gross income.
For more information, see Chapter 12, Business Deduction for Work-Related Education Expenses, in Publication 970, Tax Benefits for Education.