Paying for college is an expensive endeavor, but it's one that millions of young adults undertake each year in order to pave the road to a better future. A number of tax breaks are available for matriculating students, but many often question whether business write-offs apply to college costs.
In general, the answer is no. Individuals pursuing undergraduate degrees may utilize non-business benefits, such as the American Opportunity Credit to cover qualified education expenses, including tuition, books and course materials, according to SmartMoney.com. In addition, the Lifetime Learning credit may also be available for eligible students.
In some cases, adults pursuing certain degrees may qualify for business write-offs, assuming they meet certain conditions. For example, current employees who take courses toward their MBA may be allowed to write off these costs during filing season. However, the rules strictly say that the courses a worker is pursuing must "maintain or improve the skills used in his or her current job, profession or business," the news source reports. This means individuals who pursuing a degree in order to get hired or enter a different profession may not deduct these costs.
Individuals who plan on writing off college-related expenses may qualify for benefits under certain rules, but it's important to speak with a tax preparer
prior to filing in order to confirm.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.