Entire cost of MBA could be dedecutible

[halik]

You already got your handout. You can't deduct shit because your EITC already gave it to you. You didn't pay shit in taxes anyway.

Even in 2008 my effective tax rate was positive (after lifetime learning credit etc.). EITC only hits people under 13K AGI or something like that... really, really poor and with kids.

 

[Babbles]

I believe you are viewing this from the point of a student or non-professional perspective. The reason I'm making an issue of it is because of my personal situation and fiancee and I WILL find every deduction I can. Her documented education expenses is 15K this year and fuck yeah she is going to deduct it and it's documented. I will use the tax code to my/our advantage because we pay way too much as it is.

Sorry to be harsh, it matters to me and to us. I'm trying to figure out tax implications of our marriage.

Looking at it as both a student and a professional; was working for nearly ten years before I enrolled into a MBA program myself. I figured after capitalizing interest I am going to be over $100,000 in the hole for my education (not including forgone salary) and the wife is wrapping up her PhD and has outstanding student loans from her masters and doctorate work. We sure as shit have incentive to deduct our education.

However neither of us will qualify: I am changing businesses which makes me ineligible and she has been in school constantly since. . . well since forever and as such there is not the workplace element to "change" from.

I think that is typical of most students as well. If they get academic degrees they typically go straight from undergrad to graduate studies which disqualifies them from this deduction. Or they go back to school for a promotion or career change, which again will disqualify them. Some get their workplace to pay for it which is a no-go. Finally people go get a degree for professional licenses, which disqualifies them.

I don't think many people pay out of pocket to get a degree that is not necessarily going to benefit their career just for the hell of it. As such this little tax deduction really isn't useful for the typical university student (graduate or otherwise).

Are you certain you will qualify for it (asking sincerely as I don't know your situation)?

 

[ShawnD1]

Wait, so now that I'm an attorney, I can deduct the cost of my CPE courses? I wish I could deduct the cost of my degree. Hell, I wish I could get a refund

You should come to Canada. Education is always tax deductible here.

 

[bctbct]

Looks like this is a very narrow window and this woman had a unique job situation which entitled her to deduct her expenses.

I would encourage anyone to seek professional tax advice because the IRS is going to be whooping ass over this one.

 

[spidey07]

Looking at it as both a student and a professional; was working for nearly ten years before I enrolled into a MBA program myself. I figured after capitalizing interest I am going to be over $100,000 in the hole for my education (not including forgone salary) and the wife is wrapping up her PhD and has outstanding student loans from her masters and doctorate work. We sure as shit have incentive to deduct our education.

However neither of us will qualify: I am changing businesses which makes me ineligible and she has been in school constantly since. . . well since forever and as such there is not the workplace element to "change" from.

I think that is typical of most students as well. If they get academic degrees they typically go straight from undergrad to graduate studies which disqualifies them from this deduction. Or they go back to school for a promotion or career change, which again will disqualify them. Some get their workplace to pay for it which is a no-go. Finally people go get a degree for professional licenses, which disqualifies them.

I don't think many people pay out of pocket to get a degree that is not necessarily going to benefit their career just for the hell of it. As such this little tax deduction really isn't useful for the typical university student (graduate or otherwise).

Are you certain you will qualify for it (asking sincerely as I don't know your situation)?

Your situation most certainly calls for a tax professional and not a forum. And I am most certainly NOT a tax professional. My situation is purely mine and my honeybun's and we can deduct it.

Again, I am not a CPA or a tax professional. Our taxes are going to be complicated as hell filing for last year and CY2010 and we are going with professional help.

 

[Babbles]

Your situation most certainly calls for a tax professional and not a forum. And I am most certainly NOT a tax professional. My situation is purely mine and my honeybun's and we can deduct it.

Again, I am not a CPA or a tax professional. Our taxes are going to be complicated as hell filing for last year and CY2010 and we are going with professional help.

I am not looking for tax advice - not seeking it out on a forum - never once mentioned it. See I am competent and can read: I know we do not qualify for such deductions as mentioned in this article (outside of lifetime learning credit).

You enjoy twisting benign things around in a meaningless manor? Started off with your big issue with some off-hand comment, and now the greatly mistaken idea that I was fishing for tax advice from you, or anybody here.

 

[Elbryn]

http://www.generationtax.com/mba.html

nice decision tree on the process and ramifications. i'm not entirely certain that this lady really helps clarify much for others. her situation was unique to her and unless your conditions are exactly the same, then it's no slam dunk. given the wording of the qualifying factors, you still have to prove that your particular circumstances meet the qualifications. That means if you make it to the court stage, you'll still have to spend the time and energy to make your case. The job you get post degree will affect the decision as well. say you are currently an engineer, get an mba, and go get a job doing something in finance. they probably wont look kindly on that for the "does the degree qualify you for a new trade/profession" it's doubtful that with your engineering background you could have gotten the finance job. if you get the mba and become an engineering manager, you probably meet that cause.

to me it seems to be a do you want to play the percentages card and are you willing to spend the time/money later on to defend yourself if you do get audited?

 

[SandEagle]

what if u completed you mba 10 years ago?



btw, UofPhoenix MBA = fail

 

[Cattlegod]

Hmm, I have over 20k in tuition expenses last year for my MBA. I'm considering doing this on my tax return. I may have to call one of my tax friends.

 

[joe678]

would this apply to loan paybacks or straight paid tuition?

 

[Scouzer]

Americans can't deduct their tuition? Bummer. We can deduct all of our tuition in Canada. Plus we get big tax breaks for every month we're in school.

 

[EagleKeeper]

Tuition can be deducted if it is related to maintain/improve your curent skill set as related to your profession via the Form 2106 Business expenses. It can not be used for cross training

The keys are
1) You must have income
2) The education must be related to your profession
3) You must itemize (Schedule A)

For the other education credits - you have a limit and only the cost of tuition can be used - not additional expenses (travel, meals, supplies, lab fees, etc).

You can only select one type of credit for the expenses for a person - no mixing/matching

 

[FoBoT]

This opinion may not be treated as precedent for any other case.

this opinion may not be treated as precedent for any other case.

 

[skace]

Are they allowed to choose what can and cannot be used as precedent? Seems about as ridiculous as end user license agreements.

 

[Anonemous]

Seems like it will be used as a precedent regardless...

Is an online MBA from the University of Phoenix worth it?

 

[Fizzorin]

Are they allowed to choose what can and cannot be used as precedent? Seems about as ridiculous as end user license agreements.

The ruling came from what amounts to the "small claims court" of tax court. These rulings are never precedent-setting, but for those doing tax research who don't want to go through the process of getting an official Letter Ruling, they're at least a good start.