Deductible Education Expenses

What education expenses are tax deductible?

The following are job related expenses that can be deducted:

• Tuition, books, supplies, lab fees and similar items

   

• Certain transportation and travel costs

   

• Related expenses, such as the cost of research and typing a paper as part of an educational program.

Local Transportation costs

If your education qualifies, you can deduct local transportation costs for going directly from work to school. These expenses include the actual costs of bus, cab, or other fares, as well as the costs of using your car. If you use your car, you can deduct actual expenses or the standard mileage rate.

Whichever method you use, you can also deduct parking fees and tolls.

If you are regularly employed and go to school on a temporary basis, you can deduct the round trip costs of transportation between your home and school.

What is a temporary basis?

A temporary basis is defined as attendance at school that is expected to last (and does in fact last) for one year or less.

Overnight travel costs

If you travel to obtain qualified education and the main purpose of the trip is to attend work related courses, you can deduct expenses for travel, meals and lodging. The deductibility for these expenses is treated the same as travel expenses for other  employee business purposes including the 50% limit on meal deductions.

Record keeping

You must keep records to prove your education deduction.