Published: December 30, 2013
Tax Deductions and the MBA
The U.S. Tax Court recently ruled that an MBA student who deducted $17,000 in tuition expenses from his 2009 tax return owes more than $2,500 in back taxes to the Internal Revenue Service, Bloomberg BusinessWeek reports. Ouch. As follow up, Bloomberg BW offers a few things to keep in mind regarding tuition deductions.
“The rules for deducting educational expenses sound simple enough: Tuition is deductible when it pays for coursework that enhances skills necessary for an established job or business, as well as any courses required by an employer,” reads the Bloomberg BW article.
Of course, even the simplest rules can quickly grow complex. For instance, what if the skills you gain through an MBA not only enhance your ability to perform your current job but also qualify you to pursue a new career?
Read more