Education and Work Related Expenses

Michael Lodge

by Michael Lodge

Education and work related expenses come up every year for those of you attending school and working at the same time.  So lets go over some of the rules of deducting education, as well as those expenses you have when you work for an employer.

Question: May I claim both my job-related education expenses (minus 2% of AGI) and one of the education credits on my tax return?

Answer:

Yes, but you cannot use the same educational expenses to claim both benefits (no double benefit).

  • You may choose to allocate some of your expenses to the deduction and others to the credit.
  • This can be desirable because a qualifying expense for one benefit may not be a qualifying expense for the other tax benefit. For example, the cost of course-related books qualifies for the deduction and for the American opportunity tax credit, but not for the lifetime learning credit, unless paid to the institution as a condition of enrollment or attendance.

If you have any questions regarding this subject, please send to:  tax@icontaxgroup.com