Weekly Tax Tip for December 19, 2011
Tax breaks are available for work-related education
What have you learned today?
No matter what type of work you do, there's
always something new to learn — and when
your education is related to your current job,
you may be eligible for tax breaks in addition
to the satisfaction of increasing your knowledge.
Here are examples of work-related education
tax benefits.
Employer-provided
reimbursements. Ask your
employer about an educational assistance
program. These formal, written plans
can provide up to $5,250 of tax-free
payments for graduate and undergraduate
expenses, including tuition and
books.
Another option: working condition
fringe benefits. Your employer can
reimburse you for education expenses
that you'd otherwise be able to
deduct on your personal return.
The expenses must relate to your
current job — for example,
courses taken to improve your skills
or courses required for keeping
your present position.
Individual
tax deductions.Do you itemize?
As an employee, you can claim expenses
you pay for education directly related
to your current job. Eligible costs
include tuition, books, supplies,
and travel.
Don't have enough to itemize? The
tuition and fees deduction is available
as an adjustment to income on your
federal tax return — with
no itemizing necessary. The maximum
deduction is $4,000 and income limits
apply.
You can also receive tax benefits
when you incur educational expenses
in your sole proprietorship. Qualifying
costs are deductible on Schedule
C of your tax return.
Other education deductions and credits are available
when you update work skills. Give us a call
at (609) 689-9700 to speak with Rick Willinger
if you would like to learn more.
The tax information contained
in this site is of a general nature and should
not be acted upon in your specific situation
without further details and/or professional
assistance.
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