School principal taking courses in a doctorate program in hope of becoming school superintendent. This Dr.degree is not required for the position. The program definately improves skills for present position. In keeping with the IRS "new Trade or business" concept that teacher going to administrator is considered same kind of work, could this administrotor going to higher administrator also be considered same kind of general work? Thus making it deductible on this person's schedule A?
Thank you
Since the degree is not required for the higher level position, and the education will maintain or improve the principal's skills, it should qualify for an unreimbursed employee business expense subject to reduction by 2% of adjusted gross income.
One necessity for the deduction is that the employer will not reimburse for this expense.
If AGI allows, however, the Lifetime Learning Credit or the Tuition and Fees deduction might be a better tax strategy.
Out of curiosity, what does "will not" mean here? Has a policy of not reimbursing? No money has or will be transfered to the employee for this expense? Something in between? How much effort does the meployee have to make to attempt to get reimbursed?
Art was alluding to an employer that has a written plan allowing for educational assistance as a tax-free employee benefit. Maximum annual amount is $5250 per employee. See Chapter 11 in IRS Pub 970.
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