Question

Answer the following Essential Question: Professor Terrence, from the English department at BMCC, incurred $350 dollars in educational expenses during 2019. He purchased supplies that were used by his students during the academic year. Please advice Prof. Terrence if his educational expenses qualifies as a deduction for Adjusted Gross Income (AGI)?

Guiding Hints/Questions:

- who qualifies for educational expenses deductions?

- what is the limitations, if any?

- see instructions for Form 1040

Answer 1

Hi there,

Here is my answer to the question asked.

You may be able to deduct the cost of work-related education expenses paid during the year if you're a:

• Self-employed individual,
• Qualified performing artist
• Fee-based state or local government official, or
• Disabled individual with impairment-related education expenses

To be deductible, your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) a law requires to keep your present salary, status or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your present trade or business.

Although the education must relate to maintain or improve skills needed in your present work, education expenses incurred during temporary absence from your work may also be deductible. After your temporary absence, you must return to the same general type of work. Usually, absence from work for one year or less is considered temporary.

Expenses that you can deduct include:

• Tuition, books, supplies, lab fees, and similar items
• Certain transportation and travel costs, and
• Other educational expenses, such as the cost of research and typing

Limitation on Deduction:

If you're an eligible educator, you can deduct up to $250 ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each) of unreimbursed trade or business expenses. Qualified expenses are amounts you paid or incurred for participation in professional development courses, books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health or physical education, the expenses for supplies must be for athletic supplies.