Question

Loren is a secretary in a lawyer's office. Since he often deals with legal matters, Loren feels that a law degree will be beneficial to him. May Loren deduct his educational expenses for law school as a miscellaneous itemized deduction?

Answer 1

Taxpayers may deduct educational expenses if specific conditions are met. There are two tests related to the deduction of educational expenses, at least one of which must be met to deduct the expenses:

1.The educational expense must be paid to meet the requirements of the taxpayer’s employer or the requirements of law or regulations for keeping the taxpayer’s salary, status, or job.

2.The educational expenses must be paid to maintain or improve existing skills required in performing the duties of the taxpayer’s present work.

Analysing the given case, Yes this could be considered education that improves Loren's job. Loren will actually be entering a new profession as a lawyer, so the answer is no.