Job Related Education Expenses

What job related education expenses are tax deductible?

On Schedule A line 20, you can include the unreimbursed costs of education that:

• is required by your employer or by the law to keep your present salary, status, or job, or

   

• maintains or improves skills needed in your present work

What education expenses can be claimed for tax deductions?

Even if these requirements are met, no tax deduction on Schedule A is allowed if the education is:

• needed to meet the minimum education requirements of your present job, or

   

• part of a program of study that can qualify you for a new trade or business.

Other ways to claim education expenses tax deductions

You may be able to claim some education expenses as a tuition and fees adjustment on line 35 of Form 1040 or as a lifetime learning education credit on line 50 of Form 1040. You may want to compare the tax benefits so that you can choose the method that gives the lowest tax liability.

Minimum requirements

You cannot claim a deduction on line 20 of Schedule A for education required to meet the minimum requirements of your job. Minimum requirements are set by:

• Laws and regulations
• Standards of your profession, trade or business
• Your employer's requirements

Once you meet the minimum requirements that were in effect when you were hired, you do not have to meet them again. If the minimum requirements are changed after you are hired, you can deduct on Schedule A your expenses for the education you need to meet the new requirements.

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