You can deduct the costs of qualifying
work-related education as business expenses. Remember that this is education
that that is required by your employer or the law to keep your
present salary, status or job. The required education must serve a bona fide
business purpose of your employer. Also this education is education that
maintains or improves skills needed in your present work. Generally this
would not be education that qualifies you for a new profession. Even if the education meets one or both of the
qualifying tests, it is not qualifying work-related education if
it is needed to meet the minimum educational requirements of
your present trade or business or if it is part of a program of study that
will qualify you for a new trade or business. However, you can deduct the costs of qualifying
work-related education as a business expense even if the
education could lead you to a degree.
A scholarship or fellowship is tax free if you
are a candidate for a degree at an eligible educational institution and you
you use the scholarship or fellowship to pay qualified education expenses.
Should you Itemize?
You should itemize deductions if your total deductions
are more than the standard deduction amount. Also, if your standard
deduction is zero, you should itemize any deductions you have if
you're married and filing a separate return, and your spouse
itemizes deductions, you are filing a tax return for a
short tax year because of a change in your annual accounting period, or
you are a nonresident or dual-status alien during the year. You
are considered a dual-status alien if you were both a nonresident and
resident alien during the year. If you are a nonresident
alien who is married to a U.S. citizen or resident at the end of the year,
you can choose to be treated as a U.S. resident. If you make this choice,
you can take the standard deduction.
You may benefit from itemizing your deductions on
Schedule A (Form 1040) if you do
not qualify for the standard deduction, or the amount you can claim is
limited,had large uninsured
medical and dental expenses during the year,paid interest
and taxes on your home,had large unreimbursed employee business expenses or other
miscellaneous deductions,had large uninsured casualty or
theft losses, made large contributions to qualified
charities, or have total
itemized deductions that are more than the standard deduction to which you
otherwise are entitled.
Generally, you must decide whether to itemize
deductions or to use the standard deduction. The standard deduction is a
dollar amount that reduces the amount of income on which you are taxed. You
should itemize deductions if your allowable itemized deductions are greater
than your standard deduction. Some taxpayers must itemize deductions because
they cannot use the standard deduction.You cannot use the standard deduction if you
are married filing as married filing separately, and your spouse itemizes
deductions, you are filing a tax return for a period of
less than 12 months because of a change in your annual accounting method, or
you are a nonresident alien or a dual-status alien during the
year. If you are a nonresident alien who is married to a U.S. citizen or
resident at the end of the year, you can choose to be treated as a U.S.
resident. If you make this choice, you can take the standard deduction.
In addition, an estate or trust, common trust fund, or partnership cannot
use the standard deduction.
