Can I deduct the cost of classes I need for work?
In some cases, you may be able to deduct the cost of classes you need for work. This deduction, however, would be subject to the 2 percent of AGI limitation, along with most other miscellaneous itemized deductions.
To be deductible, your expenses must be for education that:
- Maintains or improves skills required in your present job, or
- Serves a business purpose and is required by your employer, or by law, to keep your present salary, status, or job.
However, these same expenses are not deductible if:
- The education is required to meet the minimum educational requirements of your job, or
- The education is part of a program that will lead to qualifying you in a new trade or business.
Educational expenses, related to your present work, that are incurred during periods of temporary absence from your job may also be deductible provided you return to the same job or same type of work. Generally, absence from work for one year or less is considered temporary.
