Tax Breaks for Education

Tax breaks are available for work-related education

What have you learned today?

No matter what type of work you do, there’s always something new to learn — and when your education is related to your current job, you may be eligible for tax breaks in addition to the satisfaction of increasing your knowledge.

Here are examples of work-related education tax benefits.

  • Employer-provided reimbursements. Ask your employer about an educational assistance program. These formal, written plans can provide up to $5,250 of tax-free payments for graduate and undergraduate expenses, including tuition and books.
    Another option: working condition fringe benefits. Your employer can reimburse you for education expenses that you’d otherwise be able to deduct on your personal return. The expenses must relate to your current job — for example, courses taken to improve your skills or courses required for keeping your present position.
  • Individual tax deductions. Do you itemize? As an employee, you can claim expenses you pay for education directly related to your current job. Eligible costs include tuition, books, supplies, and travel.
    Don’t have enough to itemize? The tuition and fees deduction is available as an adjustment to income on your federal tax return — with no itemizing necessary. The maximum deduction is $4,000 and income limits apply.
    You can also receive tax benefits when you incur educational expenses in your sole proprietorship. Qualifying costs are deductible on Schedule C of your tax return.

Other education deductions and credits are available when you update work skills. Give us a call if you would like to learn more.  970-207-9724