skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website

Frequently Asked Tax Questions

Itemized Deductions, Standard Deductions - Education & Work-Related Expenses

  1. What types of work-related educational expenses are deductible?
  2. Can I deduct the cost of classes I need for work?
  3. Am I eligible to claim both my job-related education expenses (minus 2% of AGI) and the Lifetime Learning Credit on my tax return?
  4. My employer included my graduate school tuition reimbursements on my W-2 as wages. Where do I claim these education expenses on my Form 1040?
  5. How do I claim an educational expense on my return?
  6. What are the limits for deducting interest paid on a student loan?
  7. Last year, my parents took out a student loan for me in their name and I also took out a student loan. My parents received Form 1098-E for their loan and I also received Form 1098-E for my loan. Can we both claim the interest from the loans on our tax returns? Last year, I was not their dependent.

Rev. date: 08/04/2012

What types of work-related educational expenses are deductible?

Deductible work-related educational expenses include:

Rev. date: 08/17/2012

Can I deduct the cost of classes I need for work?

In some cases you may be able to deduct the cost of classes you need for work.

Rev. date: 08/04/2012

Am I eligible to claim both my job-related education expenses (minus 2% of AGI) and the Lifetime Learning Credit on my tax return?

If you are eligible to deduct educational expenses and are also eligible for one of the education credits (the Lifetime Learning Credit or the American Opportunity Tax Credit), then it is possible to claim both. You cannot use the SAME educational expenses to claim both benefits (no “double benefit”).

Rev. date: 08/17/2012

My employer included my graduate school tuition reimbursements on my W-2 as wages. Where do I claim these education expenses on my Form 1040?

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.

Rev. date: 08/04/2012

How do I claim an educational expense on my return?

You may be able to deduct qualified work-related education expenses as an itemized deduction.
-The deduction is treated as a miscellaneous deduction on Form 1040, Schedule A (PDF), Itemized Deductions;
-The deduction is subject to the 2 percent of AGI floor; and
-You need to complete Form 2106 (PDF), Employee Business Expenses, or Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, or Form 8917, Tuition and Fees Deduction.
- Form 1040 Schedule C (PDF), Profit or Loss From Business.
- Form 1040, Schedule C-EZ (PDF), Net Profit From Business.
- Form 1040, Schedule F (PDF) , Profit or Loss From Farming.
Additional Information
Tax Topic 513, Educational Expenses

Rev. date: 08/04/2012

What are the limits for deducting interest paid on a student loan?

The maximum deductible interest on a qualified student loan is $2,500 per return.
There is no deduction if any one of the following is true:
There are limits based on your filing status and adjusted gross income.

Rev. date: 08/04/2012

Last year, my parents took out a student loan for me in their name and I also took out a student loan. My parents received Form 1098-E for their loan and I also received Form 1098-E for my loan. Can we both claim the interest from the loans on our tax returns? Last year, I was not their dependent.

Since you were not your parents' dependent when they took out the student loan, the interest they paid on the loan does not qualify for the student loan interest deduction.