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Education Expenses

My situation:

I am a project manager. Viciously laid off from my job in the engineering field, I found a new job, as a project manager, in the financial field. I am working to set up computer systems with accounting applications. As such, I have gone back to school to take accounting classes to enhance my skills at understanding the systems that I am working on. I am currently self employed as a contractor at this job. Now - with my reading of the tax laws, it seems that I should be able to take this as a business expense on schedule C. Does this seem correct to others?

Further - as long as I am taking these accounting classes to help me at my job, I am going to take a few more classes, that will then make me eligible to sit for the CPA exam. These classes are at the college level, but are not directly related to my employment. I see these as being deductions for AGI, assuming I meet all the income limits. Does this sound correct?

Thanks for your help.

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Reply to
blaha
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Education expenses required to maintain current job are deductible. For example, I, as a CPA am required to attain a specified amount of CPE credits to keep my CPA license. So, expenses for CPE courses would be deductible to maintain my current job or profession. Education expenses that qualify you for a new job or profession are not. If you are an engineer & study to sit for the CPA exam, that would be a new profession. ___________________________________

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Reply to
Benjamin Yazersky CPA

You've got it right; classes that are appropriate and helpful.

Unless one or more of these classes fall into the category above as helpful in your present occupation, then the answer is no. Perhaps a course in cost accounting might be helpful, but one in forensic accounting might not. It depends. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

The minute you sit for the CPA exam the education qualifies you for a new trade or profession and is no longer deductible, so be careful about that.

-Crystal

Reply to
pleasedontemailme

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