Tax Research Memorandum

To: Lauren Smith From: Tax Accountant, CPA Date: August 22, 2012 Re: Deductibility of Education cost Facts You incurred $15,000 in education expense during the tax year in the course of earning an MBA from a local university. You wants to deduct these expenses on her tax return as an employee demarcation expense, as your employer does not puddle an education expense reimbursement program. Issue The issue is (1) whether education expenses can be deductible on the tax return as an employee craft expense, and (2) weather your employer not having an education expense reimbursement program allow have an effect. Rule Work-related education expenses may be deducted as stock expenses. However, in other to claim such a tax write-off, you must: be working, itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, and have expenses for education that meet the requirements to be qualified. . Analysis The business deduction for work-related education is a federal income tax deduction for employees and self-employed workers who paid throw outing education expenses during the year. The deduction lowers the substance of income subject to tax. The deduction is not the same as a tax credit, which reduces the amount of taxes you owe (http://www.

massresources.org/education-tax-deductions.html#work). According to the IRS Publication 970 (2011), it is say that you can deduct the costs of qualifying work-related education as business expenses. To classify these expenses as deductible your education meets at least one of the following two tests. 1.The law to corroborate your present salary, status, or job and 2.The education maintains or improves skills call for in your present work. However, even if the education meets either of these tests, the education cannot be part of a program that allow for qualify you for a new trade or business, or infallible to meet the minimal educational requirements of your trade or business. It will not be qualifying... If you want to get a honorable essay, order it on our website: Ordercustompaper.com

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