It’s common to think about education expenses as they relate to fresh-faced college students just starting out – but what about the rest of us? Can you deduct the cost of an education when you’re not pursuing a degree or certificate for your first career?
You might.
Under some circumstances, you may be able to claim the cost of an education as a business expense. To take the deduction, you must be working (sorry, recent or soon to be college grads); itemize your deductions on Schedule A if you are an employee or file a file a Schedule C, Schedule C-EZ, or Schedule F if you are self-employed, and have qualifying work-related education expenses for education.
To qualify for the deduction, your education must either be required by your employer or the law to keep your present salary, status, or job or your education must help you maintain or improve skills needed in your present job. That said, expenses don’t qualify if the education is intended to meet the minimum educational requirements of your present trade or business (meaning to get started), or is intended to qualify you for a new trade or business.
It sounds complicated but think of it this way: if it’s a course you have to take (even if leads to a degree) in order to continue to keep your job – or get better at your job – it’s generally deductible. This includes continuing education credits and seminars, for example.
You can’t deduct the cost of getting your first degree or prepping for your first job (initial bar exam fees, for example, have consistently been found to be not deductible) or the cost of training to switch jobs. While your mother might find it great that you decided to give up the law to become a Master Gardener, the cost of making that jump is not deductible as a business expense – although that cost may qualify for certain educational tax credits, like the Lifetime Learning Credit.
This, of course, brings us to today’s giveaway. Deductible or not, paying for an education while working can be tiring. We have a host of giveaways today to help you stay connected with friends and family
First up, we have one netTALK DUO, which is a small, simple digital telephone adapter that provides free HD calls throughout the US and Canada using a regular phone for just $69.95, which includes a full year of service, and just $29.95 for each additional year. The netTALK DUO allows for a dedicated line inside your home or dorm room so long as you have internet access. In June, PC Mag ran ran a rave review, granting it the coveted Editor’s Choice Award. And in these cost-cutting days, the netTALK DUO is the perfect way to cut back on Back to School expenses. The netTALK DUO is available via netTALK’s website and at WalMart, Amazon, Dell, Buy.com, TigerDirect.com, CompUSA, CircuitCity, and online and instore at P.C. Richard & Son (also available in Canada, eh?).
To keep up with your iPad or Kindle, we have a TuffLuv iPad or Kindle case, the perfect functional and stylish accessory to help students easily adapt to the hustle of campus life. You can choose from a diverse range of materials and styles to wrap the latest devices in – from natural Hemp to animal-free Veggie Leather as well as the striking Moroccan design of the Marrakesh line. Tuff-Luv cases can withstand all of college life’s little hazards even those less ordinary, like a fall out of a second floor window.
Next up: a TP-LINK router. With the number of hours that students spend online, they really need a solid and reliable wireless router that will keep them online and without any drops in connection. There are a lot of fancy-looking routers out there, but TP-LINK spends their time on the quality of the Router to ensure that it just plain works. No one wants to keep walking back to the crevices of their home to reboot their router. You will set it up and never have to think about it again. The TP-lINK Ultimate Wireless N Gigabit Router (TL-WR1043ND) is easy to set-up and will keep you online with a fast, constant connection, so you can do research online, stream music and videos, and — when you need a break, of course, play online games.
We’re also giving away a skin for your laptop and/or phone from Sticky Skins. You can give your cell phone, laptop, iPod, tablet or gaming device a unique look while protecting your investment against slippage, scratches, or other damage. At Sticky Skins, you can choose from top artist designs or customize your own protective skin to turn an everyday cell phone, iPod or laptop into a work of art that reflects your style and tastes to make any device uniquely yours. You’ll enjoy beautiful designs, colors, and artistic patterns every time you text, surf the net, or jump into a game. Sticky Skin covers made of high quality vinyl that is digitally printed with vibrant colors that make your device stand out. Sticky Skins fit perfectly on hundreds of devices and are easily removable without leaving any residue. They also work well with your hard cases or carrying bags.
Finally, you can wind down with a set of BodyGuardz Bump series earphones. Bump boasts 16 ohms of sensitivity wrapped in the smallest of the Earjax models. You’ll be amazed that such incredibly crisp sound, fantastic treble, and deep bass can come out of such a little device. Bump features a full suite of silicone tips, providing a comfortable fit in virtually any ear and comfortably blocking outside noise to give you the maximum listening experience every time. And don’t forget the handy black aluminum tube and lanyard that come inside the package, helping to keep your buds safe and close by.
It’s easy to enter. Just post a comment below to tell me what you would go back to school to study if cost – and deductibility – weren’t an issue. Art? Law? Medicine? Marine Biology? Drama.
I’ll choose one winner randomly (using a number generator) for each prize out of all of the qualifying entries.
Here are some more rules because, as you know, I’m a lawyer and I like rules:
- Entries must be posted in the comments section for this blog post in the space below by 6:59 p.m. EST on September 26, 2011.
- Don’t panic if your comment doesn’t show immediately. If it goes to moderation because, for example, you’re new here, the time stamp on your comment is what counts.
- I love my Twitter followers and my Facebook fans but for this particular giveaway, tweets and Facebook comments will not be counted. Ditto for emails. You must leave your comment on the blog at this post.
- You can enter as many times as you like but you must leave a different answer each time you comment.
- Offensive comments or comments that otherwise violate the comment policy will be deleted and will not be considered valid for purposes of the contest.
- Pingbacks and other links will be disregarded for purposes of the contest.
- You must include your full name and your email address with your entry, just enter it when you register to comment. I won’t publish your email address but I do need contact information for the winning entry.
- Due to shipping considerations, only United States addresses, please. Sorry, Canada, eh?
- I respect your privacy and I will not send you anything unrelated to your entry in this contest.
- By entering the contest, you agree that I may post any part or all of your submission including your name as a part of the contest announcements or promotions, with the exception of your email address.
Comment away!
Note: The TCJA made changes to many tax deductions previously available on Schedule A, including miscellaneous deductions that exceed 2% of your adjusted gross income (“AGI”). This is applicable for the years 2018-2025.