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Student Income Tax

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Student Income Tax

Student income tax Index A Accelerated death benefits, Accelerated Death Benefits Accounting periods Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Student income tax Accrued leave payment Disability retirement and, Accrued leave payment. Student income tax Adjusted gross income (AGI), Adjustments to Income Adjustments to income, Adjustments to Income Age Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Student income tax Age 65, Qualified Individual American Association of Retired Persons (AARP), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Student income tax Annuities, Pensions and Annuities Assistance (see Tax help) B Base amount, social security benefits, Base Amount Benefits Accident or health, Other compensation. Student income tax Long-term care, Long-Term Care Insurance Contracts No-fault insurance, Other compensation. Student income tax Sickness and injury, Sickness and Injury Benefits Social security, Are Any of Your Benefits Taxable? Veterans', Veterans' benefits. Student income tax Bequests, Gifts and inheritances. Student income tax Blind persons Standard deduction for, Higher standard deduction for blindness. Student income tax C Child and dependent care credit, Child and Dependent Care Credit Children Standard deduction for, Standard Deduction for Dependents Chronically ill persons, Chronically ill individual. Student income tax Chronically ill, defined, Terminally or chronically ill defined. Student income tax Compensation For services, Compensation for Services Loss or disfigurement, Other compensation. Student income tax Contributions Foreign employment, Foreign employment contributions. Student income tax Pension or annuity, Cost. Student income tax Cost, pension or annuity, Cost. Student income tax Credit Child and dependent care, Child and Dependent Care Credit Earned income, Earned Income Credit (EIC) The elderly or the disabled, Credit for the Elderly or the Disabled Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Death benefit, accelerated, Accelerated Death Benefits Decedents, Dependents. Student income tax Standard deduction, Decedent's final return. Student income tax Deductions Generally, Deductions Insurance premiums, Medical Insurance Premiums Itemized, Itemized Deductions Meals and lodging, Meals and Lodging Medical and dental, Medical and Dental Expenses Standard, Standard Deduction Dependents, Dependents. Student income tax Standard deduction for, Standard Deduction for Dependents Disabilities, individuals with Ownership and use test, Exception to use test for individuals with a disability. Student income tax Disability Person with, Persons with disabilities. Student income tax Physician's statement, Physician's statement. Student income tax Total and permanent, Permanent and total disability. Student income tax Disability income, Disability Pensions, Other compensation. Student income tax , Disability income. Student income tax Distributions, retirement plan, Retirement Plan Distributions Drugs (see Medicines) Dual-status taxpayers Standard deduction, Persons not eligible for the standard deduction. Student income tax E Early distributions, tax, Tax on Early Distributions Earned income credit, Earned Income Credit (EIC) Elderly or disabled credit, Credit for the Elderly or the Disabled Elderly persons Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Student income tax Employment tax withholding, Reminders Employment taxes, Employment taxes. Student income tax Endowment proceeds, Endowment Contract Proceeds Estimated tax, Tax Withholding and Estimated Tax, Estimated Tax, Who Must Make Estimated Tax Payments Excess accumulation, tax on, Tax on Excess Accumulation Exclusion, gain on sale of home, Maximum Amount of Exclusion F Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Student income tax Filing requirements Decedents, Dependents. Student income tax General requirements, General Requirements Surviving spouse, Surviving spouse. Student income tax Final return for decedent Standard deduction, Decedent's final return. Student income tax First-time homebuyer credit Recapture, Repaying the first-time homebuyer credit because you sold your home. Student income tax Form, Credit for the Elderly or the Disabled, Physician's statement. Student income tax 1099-R, Form 1099-R. Student income tax , Form 1099-R. Student income tax 5329, Form 5329. Student income tax 8853, Accelerated Death Benefits Schedule R, Credit for the Elderly or the Disabled, Physician's statement. Student income tax W-4P, Withholding. Student income tax Free tax services, Free help with your tax return. Student income tax G Gain on sale of home (see Sale of home) General rule, pension or annuity, Pensions and Annuities Gifts, Gifts and inheritances. Student income tax H Help (see Tax help) Home care (see Nursing services) Home improvements, Home Improvements Home, sale of, Sale of Home Hospital services, Hospital Services Household help, Household Help I Income Adjustments, Adjustments to Income Disability, Disability Pensions, Disability income. Student income tax Gross, defined, Gross income. Student income tax Nontaxable, Taxable and Nontaxable Income Sale of home, Sale of Home Self-employment, Self-employed persons. Student income tax Taxable, Taxable and Nontaxable Income Individual retirement arrangement (IRA) Adjustments to income, Individual Retirement Arrangement (IRA) Contributions and Deductions Contributions, Contributions. Student income tax Deductible contribution, Deductible contribution. Student income tax Distributions, Individual Retirement Arrangements (IRAs) Inheritances, Gifts and inheritances. Student income tax Injury benefits, Sickness and Injury Benefits, Cost paid by you. Student income tax Insurance Accident and health, Other compensation. Student income tax , Medical Insurance Premiums Benefits, long-term care, Long-Term Care Insurance Contracts Benefits, no-fault insurance, Other compensation. Student income tax Life insurance proceeds, Life Insurance Proceeds Proceeds paid after death, Life Insurance Proceeds Proceeds paid before death, Accelerated Death Benefits Insurance premiums for retired public safety officers, Insurance Premiums for Retired Public Safety Officers Itemized deductions, Itemized Deductions Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Student income tax L Life insurance proceeds, Life Insurance Proceeds Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. Student income tax Maintenance and personal care services, Maintenance and personal care services. Student income tax Qualified insurance contracts, Qualified long-term care insurance contracts. Student income tax Qualified services, Qualified long-term care services. Student income tax Long-term care insurance, Long-Term Care Insurance Contracts Loss or disfigurement compensation, Other compensation. Student income tax Lump-sum distributions, Lump-sum distributions. Student income tax Lump-sum election, social security, Lump-Sum Election M Maintenance and personal care services, Maintenance and personal care services. Student income tax Married filing separately Itemized deductions One spouse has itemized so other must as well, Persons not eligible for the standard deduction. Student income tax Married taxpayers Age 65 or older spouse Standard deduction, Spouse 65 or older or blind. Student income tax Blind spouse Standard deduction, Spouse 65 or older or blind. Student income tax Meals and lodging expenses, Meals and Lodging Medical expenses, Medical and Dental Expenses Medicare, Medicare Part A. Student income tax , Medicare Part B. Student income tax , Medicare Part D. Student income tax Benefits, Medicare. Student income tax Medicines, Medicines Imported, Imported medicines and drugs. Student income tax Military retirement pay, Military Retirement Pay Minimum distributions, Tax on Excess Accumulation Minimum wage, Substantial gainful activity. Student income tax Missing children, Reminders Mortgage assistance payments, Mortgage assistance payments. Student income tax N Nonperiodic distributions, Nonperiodic Distributions Nonqualified use, Period of nonqualified use. Student income tax Nonresident aliens Standard deduction, Persons not eligible for the standard deduction. Student income tax Nontaxable income, Payments from a state fund for victims of crime. Student income tax Accident or health insurance benefits, Other compensation. Student income tax Bequests, Gifts and inheritances. Student income tax Generally, Taxable and Nontaxable Income Gifts, Gifts and inheritances. Student income tax Inheritances, Gifts and inheritances. Student income tax Mortgage assistance payments, Mortgage assistance payments. Student income tax No-fault insurance benefits, Other compensation. Student income tax Nutrition program for elderly, Nutrition Program for the Elderly. Student income tax Public assistance payments, Welfare benefits. Student income tax Sickness and injury benefits, Sickness and Injury Benefits Veterans' benefits, Veterans' benefits. Student income tax Winter energy use, Payments to reduce cost of winter energy use. Student income tax Workers' compensation, Workers' Compensation Nursing home, Nursing home. Student income tax Nursing services, Nursing Services Chronically ill individuals, Chronically ill individual. Student income tax Nutrition program for elderly, Nutrition Program for the Elderly. Student income tax O Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Student income tax Other items, Other Items Overall limitation, Overall limitation. Student income tax P Payments, estimated tax, Estimated Tax Pensions, Pensions and Annuities Pensions, disability, Disability Pensions Photographs, missing children, Reminders Physician's statement, disability, Physician's statement. Student income tax Prepaid insurance premiums, Prepaid insurance premiums. Student income tax Preparer, paid, Reminders Preparing your return, Return preparation assistance. Student income tax Profit-sharing plan, Retirement and profit-sharing plans. Student income tax Public assistance payments, Welfare benefits. Student income tax Publications (see Tax help) Q Qualified retirement plan, Tax on Early Distributions R Railroad retirement benefits, Railroad Retirement Benefits, Social Security and Equivalent Railroad Retirement Benefits Repayments Social security benefits, Repayment of Benefits Reporting pension income, How to report. Student income tax Residence, sale of, Sale of Home Retirement plans, distributions, Retirement Plan Distributions Returns Decedent, Dependents. Student income tax Executors and administrators, Dependents. Student income tax Filing requirements, 2013 Filing Requirements Surviving spouse, Surviving spouse. Student income tax Reverse mortgages, Reverse Mortgages S Salaries (see Compensation) Sale of Home First-time homebuyer credit, Repaying the first-time homebuyer credit because you sold your home. Student income tax Surviving spouse, Reminders Sale of home, Sale of Home Self-employed, Self-employed persons. Student income tax Short tax year Change in annual accounting period, Persons not eligible for the standard deduction. Student income tax Sickness and injury benefits, Sickness and Injury Benefits Simplified method, Pensions and Annuities Social security benefits, Social Security and Equivalent Railroad Retirement Benefits Standard deduction, Standard Deduction Age 65 or older, Higher standard deduction for age (65 or older). Student income tax Blind persons, Higher standard deduction for blindness. Student income tax Dependents, Standard Deduction for Dependents Final return of decedent, Decedent's final return. Student income tax Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Student income tax Starting date, annuity, Cost. Student income tax State fund for victims of crime, Payments from a state fund for victims of crime. Student income tax Substantial gainful activity, Substantial gainful activity. Student income tax Surrender of Iife insurance, Surrender of policy for cash. Student income tax Surviving Spouse, Reminders Surviving spouse, Surviving spouse. Student income tax Surviving spouse, insurance, Surviving spouse. Student income tax Survivors of retirees, Survivors of retirees. Student income tax T Tax Early distributions, Tax on Early Distributions Estimated, Tax Withholding and Estimated Tax, Estimated Tax Excess accumulation, Tax on Excess Accumulation Tax counseling for the elderly (TCE), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Student income tax Tax help, How To Get Tax Help Tax option, 10-year, Lump-sum distributions. Student income tax Tax return preparers, Reminders Taxable income, Taxable and Nontaxable Income Taxation of benefits, Are Any of Your Benefits Taxable? Terminally ill, defined, Terminally or chronically ill defined. Student income tax Total and permanent disability, defined, Permanent and total disability. Student income tax Transportation expenses, Transportation TTY/TDD information, How To Get Tax Help U U. Student income tax S. Student income tax citizen or resident, U. Student income tax S. Student income tax citizen or resident alien. Student income tax Unemployment compensation, Unemployment compensation. Student income tax V Veterans' benefits, Veterans' benefits. Student income tax Viatical settlement, Accelerated Death Benefits Victims of crime, Payments from a state fund for victims of crime. Student income tax Volunteer income tax assistance (VITA), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Student income tax Volunteer work, Volunteer work. Student income tax W Wages (see Compensation) Winter energy use payments, Payments to reduce cost of winter energy use. Student income tax Withholding Employment tax, Reminders Pensions and annuities, Withholding. Student income tax Workers' compensation, Workers' Compensation Worksheets, social security, Which worksheet to use. Student income tax Prev  Up     Home   More Online Publications
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The Student Income Tax

Student income tax 12. Student income tax   Business Deduction for Work-Related Education Table of Contents What's New Introduction 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. Student income tax Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. Student income tax  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 56. Student income tax 5 cents per mile. Student income tax For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Student income tax Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Student income tax To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. Student income tax What is the tax benefit of taking a business deduction for work-related education. Student income tax   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. Student income tax 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. Student income tax An itemized deduction reduces the amount of your income subject to tax. Student income tax   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Student income tax This reduces the amount of your income subject to both income tax and self-employment tax. Student income tax   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Student income tax You may qualify for these other benefits even if you do not meet the requirements listed above. Student income tax   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Student income tax Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Student income tax Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Student income tax This is education that meets at least one of the following two tests. Student income tax The education is required by your employer or the law to keep your present salary, status, or job. Student income tax The required education must serve a bona fide business purpose of your employer. Student income tax The education maintains or improves skills needed in your present work. Student income tax 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. Student income tax You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Student income tax Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Student income tax 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. Student income tax This additional education is qualifying work-related education if all three of the following requirements are met. Student income tax 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. Student income tax 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. Student income tax See Education To Maintain or Improve Skills , later. Student income tax Example. Student income tax You are a teacher who has satisfied the minimum requirements for teaching. Student income tax Your employer requires you to take an additional college course each year to keep your teaching job. Student income tax 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. Student income tax This image is too large to be displayed in the current screen. Student income tax Please click the link to view the image. Student income tax Figure 12-1 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. Student income tax This could include refresher courses, courses on current developments, and academic or vocational courses. Student income tax Example. Student income tax You repair televisions, radios, and stereo systems for XYZ Store. Student income tax To keep up with the latest changes, you take special courses in radio and stereo service. Student income tax These courses maintain and improve skills required in your work. Student income tax Maintaining skills vs. Student income tax qualifying for new job. Student income tax   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. Student income tax Education during temporary absence. Student income tax   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. Student income tax Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Student income tax Example. Student income tax You quit your biology research job to become a full-time biology graduate student for 1 year. Student income tax 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. Student income tax Education during indefinite absence. Student income tax   If you stop work for more than a year, your absence from your job is considered indefinite. Student income tax 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. Student income tax Therefore, it is not qualifying work-related education. Student income tax 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. Student income tax The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Student income tax 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. Student income tax 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. Student income tax You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Student income tax Example 1. Student income tax You are a full-time engineering student. Student income tax 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. Student income tax 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. Student income tax The education is not qualifying work-related education. Student income tax Example 2. Student income tax You are an accountant and you have met the minimum educational requirements of your employer. Student income tax Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Student income tax 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. Student income tax Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Student income tax The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Student income tax If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Student income tax 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. Student income tax You generally will be considered a faculty member when one or more of the following occurs. Student income tax You have tenure. Student income tax Your years of service count toward obtaining tenure. Student income tax You have a vote in faculty decisions. Student income tax Your school makes contributions for you to a retirement plan other than social security or a similar program. Student income tax Example 1. Student income tax The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Student income tax In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Student income tax 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. Student income tax However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Student income tax 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. Student income tax If you have all the required education except the fifth year, you have met the minimum educational requirements. Student income tax 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. Student income tax Example 2. Student income tax Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Student income tax The additional four education courses can be qualifying work-related education. Student income tax Although you do not have all the required courses, you have already met the minimum educational requirements. Student income tax Example 3. Student income tax Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Student income tax The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Student income tax They are needed to meet the minimum educational requirements for employment as a teacher. Student income tax Example 4. Student income tax You have a bachelor's degree and you work as a temporary instructor at a university. Student income tax At the same time, you take graduate courses toward an advanced degree. Student income tax The rules of the university state that you can become a faculty member only if you get a graduate degree. Student income tax Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Student income tax You have not met the minimum educational requirements to qualify you as a faculty member. Student income tax The graduate courses are not qualifying work-related education. Student income tax Certification in a new state. Student income tax   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. Student income tax This is true even if you must get additional education to be certified in another state. Student income tax Any additional education you need is qualifying work-related education. Student income tax You have already met the minimum requirements for teaching. Student income tax Teaching in another state is not a new trade or business. Student income tax Example. Student income tax You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Student income tax You move to State B and are promptly hired as a teacher. Student income tax You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Student income tax 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. Student income tax 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. Student income tax This is true even if you do not plan to enter that trade or business. Student income tax If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Student income tax Example 1. Student income tax You are an accountant. Student income tax Your employer requires you to get a law degree at your own expense. Student income tax You register at a law school for the regular curriculum that leads to a law degree. Student income tax 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. Student income tax Example 2. Student income tax You are a general practitioner of medicine. Student income tax You take a 2-week course to review developments in several specialized fields of medicine. Student income tax The course does not qualify you for a new profession. Student income tax It is qualifying work- related education because it maintains or improves skills required in your present profession. Student income tax Example 3. Student income tax While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Student income tax The program will lead to qualifying you to practice psychoanalysis. Student income tax The psychoanalytic training does not qualify you for a new profession. Student income tax It is qualifying work-related education because it maintains or improves skills required in your present profession. Student income tax 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. Student income tax They are part of a program of study that can qualify you for a new profession. Student income tax Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Student income tax A change in duties in any of the following ways is not considered a change to a new business. Student income tax Elementary school teacher to secondary school teacher. Student income tax Teacher of one subject, such as biology, to teacher of another subject, such as art. Student income tax Classroom teacher to guidance counselor. Student income tax Classroom teacher to school administrator. Student income tax 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. Student income tax If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Student income tax You cannot deduct expenses related to tax-exempt and excluded income. Student income tax Deductible expenses. Student income tax   The following education expenses can be deducted. Student income tax Tuition, books, supplies, lab fees, and similar items. Student income tax Certain transportation and travel costs. Student income tax Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Student income tax Nondeductible expenses. Student income tax   You cannot deduct personal or capital expenses. Student income tax For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Student income tax This amount is a personal expense. Student income tax Unclaimed reimbursement. Student income tax   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. Student income tax Example. Student income tax Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Student income tax You do not file a voucher and you do not get reimbursed. Student income tax Because you did not file a voucher, you cannot deduct the expenses on your tax return. Student income tax Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Student income tax 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. Student income tax Temporary basis. Student income tax   You go to school on a temporary basis if either of the following situations applies to you. Student income tax Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Student income tax 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. Student income tax Your attendance is temporary up to the date you determine it will last more than 1 year. Student income tax If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Student income tax Attendance not on a temporary basis. Student income tax   You do not go to school on a temporary basis if either of the following situations apply to you. Student income tax Your attendance at school is realistically expected to last more than 1 year. Student income tax It does not matter how long you actually attend. Student income tax 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. Student income tax Your attendance is not temporary after the date you determine it will last more than 1 year. Student income tax 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. Student income tax This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Student income tax Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Student income tax Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Student income tax Example 1. Student income tax You regularly work in a nearby town, and go directly from work to home. Student income tax You also attend school every work night for 3 months to take a course that improves your job skills. Student income tax Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Student income tax This is true regardless of the distance traveled. Student income tax Example 2. Student income tax Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Student income tax You can deduct your transportation expenses from your regular work site to school and then home. Student income tax Example 3. Student income tax Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Student income tax Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Student income tax Example 4. Student income tax Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Student income tax Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Student income tax If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Student income tax 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. Student income tax Using your car. Student income tax    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. Student income tax The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Student income tax 5 cents per mile. Student income tax Whichever method you use, you can also deduct parking fees and tolls. Student income tax See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Student income tax 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. Student income tax Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Student income tax For more information, see chapter 1 of Publication 463. Student income tax You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Student income tax Mainly personal travel. Student income tax   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Student income tax You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Student income tax   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Student income tax An important factor is the comparison of time spent on personal activities with time spent on educational activities. Student income tax 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. Student income tax Example 1. Student income tax John works in Newark, New Jersey. Student income tax He traveled to Chicago to take a deductible 1-week course at the request of his employer. Student income tax His main reason for going to Chicago was to take the course. Student income tax While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Student income tax Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Student income tax He cannot deduct his transportation expenses of going to Pleasantville. Student income tax He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Student income tax Example 2. Student income tax Sue works in Boston. Student income tax She went to a university in Michigan to take a course for work. Student income tax The course is qualifying work-related education. Student income tax She took one course, which is one-fourth of a full course load of study. Student income tax She spent the rest of the time on personal activities. Student income tax Her reasons for taking the course in Michigan were all personal. Student income tax Sue's trip is mainly personal because three-fourths of her time is considered personal time. Student income tax She cannot deduct the cost of her round-trip train ticket to Michigan. Student income tax She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Student income tax Example 3. Student income tax Dave works in Nashville and recently traveled to California to take a 2-week seminar. Student income tax The seminar is qualifying work-related education. Student income tax While there, he spent an extra 8 weeks on personal activities. Student income tax The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Student income tax Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Student income tax He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Student income tax Cruises and conventions. Student income tax   Certain cruises and conventions offer seminars or courses as part of their itinerary. Student income tax Even if the seminars or courses are work related, your deduction for travel may be limited. Student income tax This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Student income tax   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. Student income tax 50% limit on meals. Student income tax   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Student income tax If you were reimbursed for the meals, see How To Treat Reimbursements , later. Student income tax   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Student income tax 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. Student income tax Example. Student income tax You are a French language teacher. Student income tax While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Student income tax You chose your itinerary and most of your activities to improve your French language skills. Student income tax You cannot deduct your travel expenses as education expenses. Student income tax 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. Student income tax No Double Benefit Allowed You cannot do either of the following. Student income tax Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. Student income tax Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Student income tax See Adjustments to Qualifying Work-Related Education Expenses, next. Student income tax 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. Student income tax You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Student income tax Tax-free educational assistance. Student income tax   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Student income tax Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Student income tax Amounts that do not reduce qualifying work-related education expenses. Student income tax   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. Student income tax 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. Student income tax How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Student income tax There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Student income tax You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Student income tax Note. Student income tax The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Student income tax Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Student income tax Your expenses must have a business connection. Student income tax This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Student income tax You must adequately account to your employer for your expenses within a reasonable period of time. Student income tax You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Student income tax If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. Student income tax If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. Student income tax Accountable plan rules not met. Student income tax   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Student income tax Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Student income tax Expenses equal reimbursement. Student income tax   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Student income tax Because your expenses and reimbursements are equal, you do not have a deduction. Student income tax Excess expenses. Student income tax   If your expenses are more than your reimbursement, you can deduct your excess expenses. Student income tax This is discussed later, under Deducting Business Expenses . Student income tax Allocating your reimbursements for meals. Student income tax   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Student income tax If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. Student income tax Make the allocation as follows. Student income tax Divide your meal expenses by your total expenses. Student income tax Multiply your total reimbursement by the result from (1). Student income tax This is the allocated reimbursement for your meal expenses. Student income tax Subtract the amount figured in (2) from your total reimbursement. Student income tax The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Student income tax Example. Student income tax Your employer paid you an expense allowance of $2,000 under an accountable plan. Student income tax The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Student income tax There was no indication of how much of the reimbursement was for each type of expense. Student income tax Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Student income tax Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Student income tax   1. Student income tax $425 meal expenses  $2,500 total expenses = . Student income tax 17   2. Student income tax $2,000 (reimbursement)×. Student income tax 17     =$340 (allocated reimbursement for meal expenses)   3. Student income tax $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). Student income tax After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Student income tax Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. Student income tax You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Student income tax This is discussed later under Deducting Business Expenses . Student income tax An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Student income tax Reimbursements for nondeductible expenses. Student income tax   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Student income tax You must include them in your income. Student income tax For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. Student income tax   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Student income tax Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Student income tax The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Student income tax Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). Student income tax If your education 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. Student income tax See the instructions for the form you file for information on how to complete it. Student income tax 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. Student income tax If either (1) or (2) applies, you can deduct the total qualifying cost. Student income tax If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Student income tax 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, or Schedule A (Form 1040NR), line 7. Student income tax (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Student income tax ) 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. Student income tax Form 2106 or 2106-EZ. Student income tax   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Student income tax Form not required. Student income tax   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. Student income tax   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Student income tax (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Student income tax ) Using Form 2106-EZ. Student income tax   This form is shorter and easier to use than Form 2106. Student income tax 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. Student income tax   If you do not meet both of these requirements, use Form 2106. Student income tax 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. Student income tax Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. Student income tax You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Student income tax You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . Student income tax For more information on qualified performing artists, see chapter 6 of Publication 463. Student income tax 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, or Schedule A (Form 1040NR), line 14. Student income tax They are not subject to the 2%-of-adjusted-gross-income limit. Student income tax To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Student income tax For more information on impairment-related work expenses, see chapter 6 of Publication 463. Student income tax Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Student income tax Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Student income tax If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. Student income tax However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. Student income tax Examples of records to keep. Student income tax   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Student income tax You should keep adequate records or have sufficient evidence that will support your expenses. Student income tax Estimates or approximations do not qualify as proof of an expense. Student income tax Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Student income tax , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Student income tax Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. Student income tax Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. Student income tax Complete information about any scholarship or fellowship grants, including amounts you received during the year. Student income tax Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Student income tax He was selected to attend a 3-week math seminar at a university in California. Student income tax The seminar will improve his skills in his current job and is qualifying work-related education. Student income tax He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. Student income tax Victor will file Form 1040. Student income tax His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. Student income tax He shows his expenses for the seminar in Part I of the form. Student income tax He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Student income tax He enters $400 on line 4 for his tuition and books. Student income tax On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Student income tax He multiplies that amount by 50% and enters the result, $263, on line 5. Student income tax On line 6, Victor totals the amounts from lines 3 through 5. Student income tax He carries the total, $2,313, to Schedule A (Form 1040), line 21. Student income tax Since he does not claim any vehicle expenses, Victor leaves Part II blank. Student income tax His filled-in form is shown on the next page. Student income tax This image is too large to be displayed in the current screen. Student income tax Please click the link to view the image. Student income tax Form 2106-EZ for V. Student income tax Jones Prev  Up  Next   Home   More Online Publications