Expenses for education are deductible even if the education
leads to a degree, if it meets at least one of the following tests.
2) The
education is required by the taxpayer’s employer or by law.
Exception:
Education is not deductible, even though one or both of the above tests are
met, if the education:
1) Is
needed to meet the minimum educational requirements to qualify for the
taxpayer’s line of work, or
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2) Will
lead the taxpayer to qualify for a new line of work. This is true even if the
taxpayer does not intend to enter that line of work.
Education Required By Employer or By Law
Once minimum educational requirements are met for a job, an
employer or the law may require additional education. This additional education
is deductible if all the following requirements are met.
• It is required to keep the taxpayer’s present salary, status, or job.
• The
requirement serves a business purpose of the employer.
• The
education is not part of a program that will qualify the taxpayer for a new
trade or business.
If a taxpayer receives more
education than required by an employer or by law, the additional education can
qualify as work-related education only if it maintains or improves skills
required for a taxpayer’s present line of work. This could include refresher
courses, courses on current developments, and academic or vocational courses.