Can I deduct the cost of the MBA program I m taking at night as an job-related expense?
In general, expenses for courses that lead to a degree are not deductible. However, the cost of an MBA program (or other university-level classes taken for credit) may be deductible as a job-related expense if the MBA is not a minimum requirement for your job, enhances your skills for your current position, and does not qualify you for a new business. Ordinarily, your deduction for job-related expenses, including education, is generally subject to the 2 percent of adjusted gross income (AGI) floor, which means you can only deduct the amount that, along with your other miscellaneous itemized deductions, is more than 2 percent of your AGI. Starting in 2002, however, you may qualify to take an above-the-line deduction for up to $3,000 of college tuition if your modified adjusted gross income is less than $65,000 ($130,000 if filing jointly).
