Can I deduct Michigans Ross School of Business tuition from my income tax?
Generally, no. MBA courses are deductible IF (and it’s a BIG if) they meet the IRS’s so-called “work-related” test. That test is that you 1) are employed, 2) already meet the qualifications for the position you’re in, 3) must take classes that enhance the skills you already have or that your employer requires in order to keep the position you’re in, and 4) the coursework does NOT qualify you for a new or enhanced position (a “new business” as the IRS calls it). If your classes will prepare you for a “new business,” then you CANNOT take a tax deduction for tuition. For example: a law student cannot deduct law school tuition expenses (because he’s not yet a practicing attorney but is hoping to become one) but can deduct the cost of mandatory continuing legal education classes or LLM (master’s of law or master’s in tax) classes once he’s an attorney and has made the practice of law his source of income. So, if you already have some managerial or administrative experience and are getting a
