Topic Number 513 - Work-Related Education Expenses
You may be able to deduct work-related education expenses paid during the year as an itemized deduction on Form 1040, Schedule A.pdf, Itemized Deductions. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) that your employer or a law requires to keep your salary, status, or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business.
Although the education must relate to your present work, education expenses incurred during temporary absence from your job may also be deductible. After your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.
Expenses that you can deduct include:
- Tuition, books, supplies, lab fees, and similar items
- Certain transportation and travel costs, and
- Other educational expenses, such as the cost of research and typing
If you're an employee, you generally must complete Form 2106.pdf, Employee Business Expenses, or Form 2106-EZ.pdf, Unreimbursed Employee Business Expenses. Deduct the education expenses as miscellaneous itemized deductions on Form 1040, Schedule A.pdf; they're subject to the 2% of adjusted gross income limit. For information on the 2% limit, refer to Publication 529, Miscellaneous Deductions, and Form 1040, Schedule A Instructions. To determine if your work-related expenses are deductible, see Are My Work-Related Education Expenses Deductible?
Your employer may report education assistance payments on your Form W-2.pdf, Wage and Tax Statement, in the appropriate box under "other." Taxable reimbursements will be reported by your employer as income to you in the appropriate box of Form W-2.
Self-employed individuals include education expenses on Form 1040, Schedule C.pdf, Profit or Loss From Business (Sole Proprietorship), Form 1040, Schedule C-EZ.pdf, Net Profit From Business (Sole Proprietorship), or Form 1040, Schedule F.pdf, Profit or Loss From Farming.
For more information on work-related education expenses, education tax credits, or information for specific types of employees, such as performing artists, refer to Publication 970, Tax Benefits for Education. Also, for additional information about education benefits, review Tax Benefits for Education: Information Center and Am I Eligible to Claim an Education Credit?