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File a free tax extension Index A Advance EIC tables, instructions, Advance Payment Methods for the Earned Income Credit (EIC) Aliens, nonresident, Withholding Income Taxes on the Wages of Nonresident Alien Employees Alternative methods of withholding, Alternative Methods for Figuring Withholding C Combined income tax, employee social security tax, and employee Medicare tax withholding tables, Combined Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables F Formula tables for percentage method withholding (for automated payroll systems), Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) I Introduction, Introduction N Nonresident alien employees, Withholding Income Taxes on the Wages of Nonresident Alien Employees Notice to employers, Notice to Employers Q Qualified transportation benefits Commuter highway vehicle transportation, Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes Transit passes, Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes W Wage bracket percentage method tables (for automated payroll systems), Wage Bracket Percentage Method Tables (for Automated Payroll Systems) Withholding income taxes on wages Nonresident alien employees, Withholding Income Taxes on the Wages of Nonresident Alien Employees Withholding: Alternative methods, Alternative Methods for Figuring Withholding Percentage method, Percentage Method Wage bracket method, Wage Bracket Method Prev  Up     Home   More Online Publications
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File a free tax extension 27. File a free tax extension   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. File a free tax extension Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. File a free tax extension  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013, through December 31, 2013, is 56½ cents per mile. File a free tax extension For more information, see Transportation Expenses under What Expenses Can Be Deducted. File a free tax extension Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. File a free tax extension To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . File a free tax extension If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. File a free tax extension Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. File a free tax extension See chapter 28. File a free tax extension If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. File a free tax extension Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). File a free tax extension You may qualify for these other benefits even if you do not meet the requirements listed earlier. File a free tax extension Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. File a free tax extension Generally, you may claim any number of benefits as long as you use different expenses to figure each one. File a free tax extension When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. File a free tax extension Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. File a free tax extension This is education that meets at least one of the following two tests. File a free tax extension The education is required by your employer or the law to keep your present salary, status, or job. File a free tax extension The required education must serve a bona fide business purpose of your employer. File a free tax extension The education maintains or improves skills needed in your present work. File a free tax extension However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. File a free tax extension You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. File a free tax extension Use Figure 27-A, later, as a quick check to see if your education qualifies. File a free tax extension Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. File a free tax extension This additional education is qualifying work-related education if all three of the following requirements are met. File a free tax extension It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. File a free tax extension When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. File a free tax extension See Education To Maintain or Improve Skills , later. File a free tax extension Example. File a free tax extension You are a teacher who has satisfied the minimum requirements for teaching. File a free tax extension Your employer requires you to take an additional college course each year to keep your teaching job. File a free tax extension If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. File a free tax extension Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. File a free tax extension This could include refresher courses, courses on current developments, and academic or vocational courses. File a free tax extension Example. File a free tax extension You repair televisions, radios, and stereo systems for XYZ Store. File a free tax extension To keep up with the latest changes, you take special courses in radio and stereo service. File a free tax extension These courses maintain and improve skills required in your work. File a free tax extension Maintaining skills vs. File a free tax extension qualifying for new job. File a free tax extension   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. File a free tax extension Education during temporary absence. File a free tax extension   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. File a free tax extension Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. File a free tax extension Example. File a free tax extension You quit your biology research job to become a full-time biology graduate student for one year. File a free tax extension If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. File a free tax extension Education during indefinite absence. File a free tax extension   If you stop work for more than a year, your absence from your job is considered indefinite. File a free tax extension Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. File a free tax extension Therefore, it is not qualifying work-related education. File a free tax extension Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. File a free tax extension The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. File a free tax extension Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. File a free tax extension This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. File a free tax extension You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. File a free tax extension Example 1. File a free tax extension You are a full-time engineering student. File a free tax extension Although you have not received your degree or certification, you work part-time as an engineer for a firm that will employ you as a full-time engineer after you finish college. File a free tax extension Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. File a free tax extension The education is not qualifying work-related education. File a free tax extension Example 2. File a free tax extension You are an accountant and you have met the minimum educational requirements of your employer. File a free tax extension Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. File a free tax extension These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. File a free tax extension Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. File a free tax extension The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. File a free tax extension If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. File a free tax extension The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. File a free tax extension You generally will be considered a faculty member when one or more of the following occurs. File a free tax extension You have tenure. File a free tax extension Your years of service count toward obtaining tenure. File a free tax extension You have a vote in faculty decisions. File a free tax extension Your school makes contributions for you to a retirement plan other than social security or a similar program. File a free tax extension Example 1. File a free tax extension The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. File a free tax extension In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. File a free tax extension If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. File a free tax extension However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. File a free tax extension Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. File a free tax extension If you have all the required education except the fifth year, you have met the minimum educational requirements. File a free tax extension The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. File a free tax extension Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. File a free tax extension Figure 27-A. File a free tax extension Does Your Work-Related Education Qualify?" Example 2. File a free tax extension Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. File a free tax extension The additional four education courses can be qualifying work-related education. File a free tax extension Although you do not have all the required courses, you have already met the minimum educational requirements. File a free tax extension Example 3. File a free tax extension Assume the same facts as in Example 1 except that you are hired with only 3 years of college. File a free tax extension The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. File a free tax extension They are needed to meet the minimum educational requirements for employment as a teacher. File a free tax extension Example 4. File a free tax extension You have a bachelor's degree and you work as a temporary instructor at a university. File a free tax extension At the same time, you take graduate courses toward an advanced degree. File a free tax extension The rules of the university state that you can become a faculty member only if you get a graduate degree. File a free tax extension Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. File a free tax extension You have not met the minimum educational requirements to qualify you as a faculty member. File a free tax extension The graduate courses are not qualifying work-related education. File a free tax extension Certification in a new state. File a free tax extension   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. File a free tax extension This is true even if you must get additional education to be certified in another state. File a free tax extension Any additional education you need is qualifying work-related education. File a free tax extension You have already met the minimum requirements for teaching. File a free tax extension Teaching in another state is not a new trade or business. File a free tax extension Example. File a free tax extension You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. File a free tax extension You move to State B and are promptly hired as a teacher. File a free tax extension You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. File a free tax extension These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. File a free tax extension Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. File a free tax extension This is true even if you do not plan to enter that trade or business. File a free tax extension If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. File a free tax extension Example 1. File a free tax extension You are an accountant. File a free tax extension Your employer requires you to get a law degree at your own expense. File a free tax extension You register at a law school for the regular curriculum that leads to a law degree. File a free tax extension Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. File a free tax extension Example 2. File a free tax extension You are a general practitioner of medicine. File a free tax extension You take a 2-week course to review developments in several specialized fields of medicine. File a free tax extension The course does not qualify you for a new profession. File a free tax extension It is qualifying work-related education because it maintains or improves skills required in your present profession. File a free tax extension Example 3. File a free tax extension While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. File a free tax extension The program will lead to qualifying you to practice psychoanalysis. File a free tax extension The psychoanalytic training does not qualify you for a new profession. File a free tax extension It is qualifying work-related education because it maintains or improves skills required in your present profession. File a free tax extension Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. File a free tax extension They are part of a program of study that can qualify you for a new profession. File a free tax extension Teaching and Related Duties All teaching and related duties are considered the same general kind of work. File a free tax extension A change in duties in any of the following ways is not considered a change to a new business. File a free tax extension Elementary school teacher to secondary school teacher. File a free tax extension Teacher of one subject, such as biology, to teacher of another subject, such as art. File a free tax extension Classroom teacher to guidance counselor. File a free tax extension Classroom teacher to school administrator. File a free tax extension What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education , you can generally deduct your education expenses as business expenses. File a free tax extension If you are not self-employed, you can deduct business expenses only if you itemize your deductions. File a free tax extension You cannot deduct expenses related to tax-exempt and excluded income. File a free tax extension Deductible expenses. File a free tax extension   The following education expenses can be deducted. File a free tax extension Tuition, books, supplies, lab fees, and similar items. File a free tax extension Certain transportation and travel costs. File a free tax extension Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. File a free tax extension Nondeductible expenses. File a free tax extension   You cannot deduct personal or capital expenses. File a free tax extension For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. File a free tax extension This amount is a personal expense. File a free tax extension Unclaimed reimbursement. File a free tax extension   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. File a free tax extension Example. File a free tax extension Your employer agrees to pay your education expenses if you file a voucher showing your expenses. File a free tax extension You do not file a voucher, and you do not get reimbursed. File a free tax extension Because you did not file a voucher, you cannot deduct the expenses on your tax return. File a free tax extension Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. File a free tax extension If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. File a free tax extension Temporary basis. File a free tax extension   You go to school on a temporary basis if either of the following situations applies to you. File a free tax extension Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. File a free tax extension Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. File a free tax extension Your attendance is temporary up to the date you determine it will last more than 1 year. File a free tax extension Note. File a free tax extension If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. File a free tax extension Attendance not on a temporary basis. File a free tax extension   You do not go to school on a temporary basis if either of the following situations apply to you. File a free tax extension Your attendance at school is realistically expected to last more than 1 year. File a free tax extension It does not matter how long you actually attend. File a free tax extension Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. File a free tax extension Your attendance is not temporary after the date you determine it will last more than 1 year. File a free tax extension Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. File a free tax extension This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. File a free tax extension Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. File a free tax extension Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. File a free tax extension Example 1. File a free tax extension You regularly work in a nearby town, and go directly from work to home. File a free tax extension You also attend school every work night for 3 months to take a course that improves your job skills. File a free tax extension Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. File a free tax extension This is true regardless of the distance traveled. File a free tax extension Example 2. File a free tax extension Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. File a free tax extension You can deduct your transportation expenses from your regular work site to school and then home. File a free tax extension Example 3. File a free tax extension Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. File a free tax extension Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. File a free tax extension Example 4. File a free tax extension Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. File a free tax extension Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. File a free tax extension If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. File a free tax extension If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. File a free tax extension Using your car. File a free tax extension   If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. File a free tax extension The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. File a free tax extension Whichever method you use, you can also deduct parking fees and tolls. File a free tax extension See chapter 26 for information on deducting your actual expenses of using a car. File a free tax extension Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. File a free tax extension Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. File a free tax extension For more information, see chapter 26. File a free tax extension You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. File a free tax extension Mainly personal travel. File a free tax extension   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. File a free tax extension You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. File a free tax extension   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. File a free tax extension An important factor is the comparison of time spent on personal activities with time spent on educational activities. File a free tax extension If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. File a free tax extension Example 1. File a free tax extension John works in Newark, New Jersey. File a free tax extension He traveled to Chicago to take a deductible 1-week course at the request of his employer. File a free tax extension His main reason for going to Chicago was to take the course. File a free tax extension While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. File a free tax extension Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. File a free tax extension He cannot deduct his transportation expenses of going to Pleasantville. File a free tax extension He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. File a free tax extension Example 2. File a free tax extension Sue works in Boston. File a free tax extension She went to a university in Michigan to take a course for work. File a free tax extension The course is qualifying work-related education. File a free tax extension She took one course, which is one-fourth of a full course load of study. File a free tax extension She spent the rest of the time on personal activities. File a free tax extension Her reasons for taking the course in Michigan were all personal. File a free tax extension Sue's trip is mainly personal because three-fourths of her time is considered personal time. File a free tax extension She cannot deduct the cost of her round-trip train ticket to Michigan. File a free tax extension She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. File a free tax extension Example 3. File a free tax extension Dave works in Nashville and recently traveled to California to take a 2-week seminar. File a free tax extension The seminar is qualifying work-related education. File a free tax extension While there, he spent an extra 8 weeks on personal activities. File a free tax extension The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. File a free tax extension Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. File a free tax extension He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. File a free tax extension Cruises and conventions. File a free tax extension   Certain cruises and conventions offer seminars or courses as part of their itinerary. File a free tax extension Even if the seminars or courses are work-related, your deduction for travel may be limited. File a free tax extension This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. File a free tax extension   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. File a free tax extension 50% limit on meals. File a free tax extension   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. File a free tax extension You cannot have been reimbursed for the meals. File a free tax extension   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. File a free tax extension Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. File a free tax extension Example. File a free tax extension You are a French language teacher. File a free tax extension While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. File a free tax extension You chose your itinerary and most of your activities to improve your French language skills. File a free tax extension You cannot deduct your travel expenses as education expenses. File a free tax extension This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. File a free tax extension No Double Benefit Allowed You cannot do either of the following. File a free tax extension Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). File a free tax extension Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. File a free tax extension See Adjustments to Qualifying Work-Related Education Expenses , next. File a free tax extension Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. File a free tax extension You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. File a free tax extension For more information, see chapter 12 of Publication 970. File a free tax extension Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. File a free tax extension Amounts that do not reduce qualifying work-related education expenses. File a free tax extension   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. File a free tax extension   Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. File a free tax extension Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. File a free tax extension There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. File a free tax extension You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. File a free tax extension For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. File a free tax extension Deducting Business Expenses Self-employed persons and employees report business expenses differently. File a free tax extension The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. File a free tax extension Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). File a free tax extension If your educational expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. File a free tax extension See the instructions for the form you file for information on how to complete it. File a free tax extension Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. File a free tax extension If either (1) or (2) applies, you can deduct the total qualifying cost. File a free tax extension If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. File a free tax extension In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21. File a free tax extension (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. File a free tax extension ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. File a free tax extension See chapter 28. File a free tax extension Form 2106 or 2106-EZ. File a free tax extension   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. File a free tax extension Form not required. File a free tax extension   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. File a free tax extension   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. File a free tax extension (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. File a free tax extension ) Using Form 2106-EZ. File a free tax extension   This form is shorter and easier to use than Form 2106. File a free tax extension Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. File a free tax extension   If you do not meet both of these requirements, use Form 2106. File a free tax extension Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. File a free tax extension Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. File a free tax extension You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. File a free tax extension You must complete Form 2106 or 2106-EZ to figure your deduction, even if you meet the requirements described earlier under Form not required . File a free tax extension For more information on qualified performing artists, see chapter 6 of Publication 463. File a free tax extension Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28. File a free tax extension They are not subject to the 2%-of-adjusted-gross-income limit. File a free tax extension To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . File a free tax extension For more information on impairment-related work expenses, see chapter 6 of Publication 463. File a free tax extension Recordkeeping You must keep records as proof of any deduction claimed on your tax return. File a free tax extension Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. File a free tax extension For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. File a free tax extension Prev  Up  Next   Home   More Online Publications