Write Off an MBA

Discussion in 'General Distance Learning Discussions' started by macattack, Jul 19, 2007.

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  1. macattack

    macattack New Member

    I know this topic has been discussed recently. Here is a good article about the tax deductibility of your education.

    Writing Off an MBA
     
  2. Daniel Luechtefeld

    Daniel Luechtefeld New Member

    The article states that under normal circumstances the maximum deduction is $4000.
     
  3. jtaee1920

    jtaee1920 New Member

    $4000 for 2007. $4K per tax year may be incentive to go slowly.

    However, most two income professional families won't qualify.
     
  4. mhanrahan

    mhanrahan New Member

    Well, education expenses being limited to $4,000 is not exactly correct.

    The $4,000 limit applies to the the Tuition & Fees Deduction, which is an above the line deduction.

    If your education qualifies for a business deduction, you can put the rest of your costs in excess of the $4,000 on your Schedule A as a Miscellaneous Itemized Deduction, subject to the 2% floor. Not as good of a tax result, but it is better than nothing.

    As I posted in another thread, you would want to draft your return both with the lifetime learning tax credit and the Tuition & Fees Deduction and choose the method that gives you the best tax answer.

    If any of you have questions about what will work in your particular circumstances, I suggest you find a good tax person and pay for some situation specific advice.
     
  5. Dave Wagner

    Dave Wagner Active Member

    J.K. Lasser's Tax Guide is available at Wal-Mart for about $13.00 including sales tax. I recommend that you go read the section about educational deductions and then buy if you think you need to. Do this before paying to consulting with a tax person.

    Dave
     

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