A taxpayer can deduct the cost of education undertaken to maintain or improve skills required on his or her
current job, or to meet the requirements of the current employer or applicable law or regulations as a condition
to the retention of current employment or salary.
Deductible expenses include tuition, books, supplies, and the cost of travel, board and lodging if the education
is away from home. A person need not enroll on any particular basis.
The deduction applies to any educational course, including seminars, correspondence study courses, and continuing
education courses. However, the deduction does not apply to education leading to a new trade or business.
A deduction for education costs is an unreimbursed, itemized deduction subject to the 2% of AGI floor. So, some
or even all of the deduction may be lost because of the 2% limit.
However, self-employed individuals can take their educational expenses as a deduction on Schedule C and the
deduction is not subject to the 2% limit.