Tip of the Week: Education Tax Deductions (9/6/99)

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	Schooltime Breaks Financial Tip of the Week by Deloitte & Touche OnLine September 6, 1999

Heading to class? Tax deductions are available.

See our archive of previous tips on your money, your taxes and your financial plan.

September brings back-to-school time, not only for children and teenagers, but also for many adults, who head to the classroom for some additional training.

There are a few tax breaks available for education expenses. An itemized deduction generally is available for education/training expenses incurred to:

Maintain or improve a skill required in a trade or business currently engaged in by the taxpayer, or
Meet the express requirements of the taxpayer’s employer, or
Mandates of applicable law or regulations, imposed as a condition of continued employment.

Education expenses that are related to minimum educational requirements, or training that enables the individual to begin working in a new trade or business, are not deductible.

In the case of an employee, education costs may be claimed as an itemized deduction only if

The costs are not reimbursed by the employer,
The expenses meet the above criteria for deductibility, and
The education expenses, along with other miscellaneous deductions, exceed two percent of the taxpayer’s adjusted gross income (AGI).

For more information, see our article "Higher Ed Tax Benefits" in our Personal Finance Advisor section.