I know this topic has been discussed recently. Here is a good article about the tax deductibility of your education. Writing Off an MBA
$4000 for 2007. $4K per tax year may be incentive to go slowly. However, most two income professional families won't qualify.
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.
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