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Taxpayer Help and Education  

Educational Expenses

Topic 513

You may be able to deduct work-related educational expenses as an itemized deduction on Schedule A, Form 1040. To be
deductible, your expenses must be for education that: 

1.Maintains or improves skills required in your present job; or 
2.Serves a business purpose and is required by your employer, or by law or regulations, to keep your present salary,
status, or job. 

Your expenses are not deductible if the education is required to meet the minimum educational requirements of your job, or is
part of a program that will lead to qualifying you in a new trade or business. 

Although the education must relate to your present work, educational expenses incurred during vacation or other temporary
absence from your job may be deductible. However, after your temporary absence you must return to the same kind of
work. Usually, absence from work for one year or less is considered temporary. 

Educational expenses include amounts spent for tuition, books, supplies, laboratory fees, and similar items. They also include
the cost of correspondence courses, as well as formal training and research you do as part of an educational program.
Transportation and travel expenses to attend qualified educational activities may also be deductible. 


If you are an employee, you generally must complete Form 2106 or Form 2106EZ. Educational expenses are deducted as
miscellaneous itemized deductions on Schedule A of Form 1040; they are subject to the 2% of adjusted gross income limit.
For new information on the 2% limit, select Topic 508. 

Self-employed individuals include educational expenses on Schedule C, C-EZ, or F of the Form 1040. 

You can also exclude up to $5,250 of employer-provided educational benefits from income that is received under a qualified
educational assistance program. This exclusion applies to benefits you receive for undergraduate courses that begin before
June 1, 2000. 

Your employer may report the educational assistance payments on your W-2 in Box 14 under "other". The payments do not
have to be for work-related courses but cannot be for courses involving sports, games, or hobbies, or for courses leading to
an advanced academic or professional degree. Taxable reimbursement will be reported by your employer as income to you
in Box 1 of Form W-2. 

For more information refer to Publication 508, Education Expenses, Publication 970, Tax Benefits for Higher Education
for information on Education Tax Credits other educational incentives. Publications and forms may be downloaded from this
site or ordered by calling 1-800-829-3676.

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