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MBA Tax Deduction
Old 02-05-2009, 07:23 PM   #1
Confused about dryer sheets
Join Date: Oct 2008
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MBA Tax Deduction

I spent about $30,000 in tuition for MBA last year. I got about $3000 refunded by my work, but they showed it as income (so taxes are already paid and everything). I want to be able to deduct the MBA as a miscellaneous expense (because otherwise I get about $2000 as tuition deduction -- maybe -- I make too much to contribute to either of the education credits).

I am a senior programmer at my company. I do some lead work on projects, including communicating with other teams and juggling multiple projects at a time. My company has a policy of not paying for education unless it somehow relates to my current role, but I don't know whether that's good enough for IRS.

I also do freelancing work (two different lines, really) on the side, but I earned very little in the way of income and am indeed showing a loss all in all.

So my question is regarding whether I can deduct my tuition as a miscellaneous expense.

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Old 02-05-2009, 08:09 PM   #2
Recycles dryer sheets
Join Date: Oct 2007
Location: Columbia, SC
Posts: 63
I am also taking courses for my MBA. Our company has a policy to reimburse education expenses up to $5250 untaxed, everything above is income and will be taxed. They claim they do this to meet IRS guidelines.

I cannot answer your actual question but it seems that companies can reimburse without you paying taxes.

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Old 02-06-2009, 05:17 AM   #3
Confused about dryer sheets
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2good, I am aware of this, but my company chooses not to do this, because it doesn't have a company-wide tuition reimbursement policy.
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Old 02-06-2009, 07:54 AM   #4
Thinks s/he gets paid by the post
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The answer is not clear cut and depends on your exact circumstances. I would read IRS Publication 17, section 27: Tax Benefits for Work Related Education.
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