MBA Tax Deduction

[Minesweeper]

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.

 

[2good]

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.

 

[Minesweeper]

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.

 

[soupcxan]

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.

http://www.irs.gov/pub/irs-pdf/p17.pdf