Taxpayer could deduct costs of getting a master’s degree. A taxpayer can deduct education expenses if they don’t qualify him or her for a new trade or business and meet other requirements. The U.S. Tax Court ruled that a man could deduct the costs of obtaining an MBA as unreimbursed employee expenses. The MBA didn’t qualify him for a new profession but refined the existing business and investment skills he used in a former manager position. The court further found the man stayed in the same trade or business after attaining the MBA. (Long, TC Summary Op 2016-88)
Is the Cost of a Master’s Degree Tax-Deductible?
