In some cases, you may be able to deduct the cost of classes you need for work. This deduction, however, would be subject to the 2 percent of AGI floor, along with most other miscellaneous deductions you list on Form 1040, Schedule A (PDF), Itemized Deductions.

To be deductible, your expenses must be for education that:

(1) Maintains or improves skills required in your present job, or

(2) Serves a business purpose and is required by your employer, or by law, to keep your present salary, status, or job.

However, these same expenses are not deductible if:

(1) The education is required to meet the minimum educational requirements of your job, or

(2) The education is part of a program that will lead to qualifying you in a new trade or business.

Educational expenses, related to your present work, that are incurred during periods of temporary absence from your job may also be deductible provided you return to the same job or same type of work. Generally, absence from work for one year or less is considered temporary.

For more information, refer to Publication 970, Tax Benefits for Education; and Tax Topic 513, Educational Expenses.

Reference:

Publication 970, Tax Benefits for Education

Tax Topic 513, Educational Expenses

If you are eligible to deduct educational expenses and are also eligible for the lifetime learning credit, then it is possible to claim both, as long as you do NOT use the SAME educational expenses to claim both benefits. Your expenses must be divided between the two. This is sometimes desirable because a qualifying expense for one benefit may not be a qualifying expense for the other tax benefit. For more information, refer to Publication 970, Tax Benefits for Education; Form 8863 (PDF), Education Credit (Hope and Lifetime Learning Credit); and Tax Topic 513, Educational Expenses.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 513, Educational Expenses
• Form 8863 (PDF), Education Credit (Hope and Lifetime Learning Credits)

You may be able to claim this deduction as long as the position of Advanced Practitioner of Nursing does not constitute a change of trade or business. If the education merely maintains or improves the skills required in your employment and you merely have a change of duties, your expenses would likely be deductible as job education expenses, subject to certain limitations. However, you should consider the relative merits of taking a tax deduction versus taking a tax credit (the Hope and Lifetime Learning Credits) for the same expense. For more information on the Education Credits, including the Hope and Lifetime Learning Credits, refer to Publication 970 , Tax Benefits for Education . For more information on deducting education expenses, refer to Tax Topic 513, Educational Expenses ; and Instructions for Form 2106, Employee Business Expenses

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 513, Educational Expenses
• Form 8863 (PDF), Education Credit (Hope and Lifetime Learning Credits)
• Form 2106 (PDF), Employee Business Expenses

If you itemize deductions you may be able to deduct work-related educational expenses as job expenses which, when combined with your other miscellaneous deductions, are subject to the 2% of adjusted gross income limitation on Form 1040, Schedule A (PDF), Itemized Deductions. To be deductible, your expenses must be for education that:

Your expenses are not deductible if the education is required to meet the minimum educational requirements of your job or is part of a program that will lead to qualifying you in a new trade or business. For more information on deductible educational expenses, refer to Tax Topic 513, Educational Expenses; orPublication 970 Tax Benefits for Education;, and Instructions for Form 2106, Employee Business Expenses.

References:

• Publication 970, Tax Benefits For Education
• Form 1040, Schedule A (PDF), Itemized Deductions
• Tax Topic 513, Education Expenses
• Form 2106 (PDF), Employee Business Expense

If your graduate school tuition is deductible and the reimbursements are included in your income as wages, you may take the expense as a miscellaneous itemized deduction on Form 1040, Schedule A (PDF), Itemized Deductions, line 20. You may also need to attach Form 2106 (PDF), Employee Business Expenses. For more information, refer to Publication 970Tax Benefits for Education; Tax Topic 513, Educational Expenses; and Form 2106 (PDF), Employee Business Expense.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 513, Educational Expenses

Yes. For courses beginning before 2002 it applied only to benefits you receive for undergraduate courses. Beginning with the year 2002, employer-provided educational assistance includes graduate level courses. For more information, refer to Publication 970, Tax Benefits for Education.

References:

• Publication 970, Tax Benefits for Education

Generally, you must use Form 2106 (PDF), Employee Business Expenses, or Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, to claim a deduction for employee business expenses. Your deductible expense is then taken on line 20 of Form 1040, Schedule A (PDF) , as a miscellaneous itemized deduction, subject to the 2% of adjusted gross income floor. Special rules may apply, depending on the reimbursement arrangement you have with your employer. For additional information, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses, Tax Topic 514, Employee Business Expenses, and Publication 529, Miscellaneous Deductions.

References:

• Publication 463, Travel, Entertainment, Gift, and Car Expenses
• Form 1040 (PDF), U.S. Individual Income Tax Return
• Form 1040, Schedule A (PDF), Itemized Deductions
• Form 2106 (PDF), Employee Business Expenses
• Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses
• Tax Topic 514, Employee Business Expense
• Publication 529, Miscellaneous Deductions

When moving expenses coincide closely with a job transfer or the start of a new job, some of those expenses may qualify for deduction as an adjustment to income on Form 1040 (PDF), U.S. Individual Income Tax Return. You must have moved far enough, and, generally, closer to your new job than you were before you moved. You must have started and kept full-time work for a specific period after the move. Not all moving expenses are deductible. Deductible expenses are generally limited to one-way transportation, including lodging, of your household members along the most direct route to your new residence, and transportation, parking and storage of household goods. You cannot deduct a reimbursed expense, unless the reimbursement has been counted in your wages. For more information, refer to Publication 521, Moving Expenses; Tax Topic 455, Moving Expenses; and the Instructions for Form 3903 (PDF), Moving Expenses.

References:

• Publication 521, Moving Expenses
• Form 3903 (PDF), Moving Expenses
• Tax Topic 455, Moving Expenses
• Instructions for Form 3903 (PDF), Moving Expenses

You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is:

Use Form 4562 (PDF) , Depreciation and Amortization , to compute the depreciation. There have been recent changes to the percentage of depreciation claimed in the first year you place the property in service.

The cost of a computer purchased for business use can be expensed under section 179 in the first year if qualified, or depreciated over the recovery period. To claim the expense in the first year, the property must be used more than 50% for business use, and meet the other requirements for expensing.

The 2003 Jobs and Growth Act raised the aggregate cost that can be expensed for any tax year after 2002 and before 2006 to $100,000. The new law also expanded the definition of Code Section 179 property to include off-the shelf computer software. See Code Section 179 for the expanded definition.

If you make a choice to depreciate the property you can claim a special depreciation allowance for qualified property you acquired after September 10, 2001 and before January 1, 2005. The allowance is figured before you calculate your regular depreciation. See Publication 946 , How to Depreciate Property for additional information on the special deduction.

You cannot take a section 179 deduction for the item or claim accelerated depreciation unless your use of the computer is more than 50% business or job-related use (and you meet the two conditions listed above).

Section 179 deductions and accelerated depreciation methods are explained in Publication 946, How to Depreciate Property.

References:

• Publication 946, How to Depreciate Property
• Code Section 179

Meal expenses are deductible only if your trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. The amount of the meal expenses must be substantiated, but instead of keeping records of the actual cost of your meal expenses you can generally use a standard meal allowance ranging from $30 to $50 in 2003 depending on where and when you travel.

Generally, the deduction for unreimbursed business meals is limited to 50% of the cost that would otherwise be deductible.

For more information on business travel expenses and restrictions, refer to Tax Topic 511 , or Publication 463, Travel, Entertainment, Gift, and Car Expenses, and Publication 1542, Per Diem Rates .

References:

• Publication 463, Travel, Entertainment, Gift, and Car Expenses
• Tax Topic 511, Business travel expenses
• Publication 1542, Per Diem Rates