Taxpayer asks:
Hi Taxgirl,
This is related to a previous question you answered. I am searching all over the place for the answer to this question, and I can’t seem to find it. I know that my work-related education is tax-deductible and that I have to include it on my Schedule C form. However, I’m not sure where on the form this should be reflected. I can’t find the right grouping under Part II, and I’m wondering if I should include it under Part V. I know this is a specific form-related question, but I was wondering if you could help me out!
Thanks,
Taxgirl says:
This is a great question! For most employees, qualified work-related educational expenses that can’t be classified as something else (like the Lifetime Learning Credit) is reportable on Schedule A on line 21 (for 2009).
However, for self-employed persons, qualified work-related education expenses are reportable on Schedule C, Part II on line 27 (for 2009).
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
Would this apply if you were a CPA or CFA and you took required CPE courses? Do these just go on the schedule A?
Dave, if you’re self-employed, I think you would still properly deduct them on Schedule C. If you’re a CPA at a firm, for example, they go on Schedule A.
Education credits and the tuition and fee deduction have been fun (I’m a tax geek) to work with. Since the tuition and fee deduction lowers the AGI it can be used to qualify some clients for other credits they would not get with 2 or 4000 more in their AGI. Also the Tuition and Fee deduction lowers AGI and therefore on most state returns lowers the state tax as well. Many times this is a better deal than the lifetime learning credit.