Question

. Indicate the amount, if any, of deductible education expenses in each of the following cases. Comment briefly on your answer and state whether the deduction is deductible for or from adjusted gross income.

a. C is employed as a plumber, but is training to become a computer programmer. During the year, he paid $500 for tuition and books related to a college course in programming.

b. E is a licensed nurse. During the year, she spend $300 on courses to become a registered nurse.

c. R paid $1,000 fee to take the CPA exam and $3,000 for a CPA review course. R is currently employed by a public accounting firm.

d. R is an IRS agent. This year, he began taking courses toward a law degree emphasizing tax. Tuition and books cost for the year is $20,000.

e. H is a high school instructor teaching European history. On a one-year sabbatical leave from school, he traveled to Europe, taking slides which he planned on using in his classes. The trip cost $7,000, including $1,000 for meals.

Answer 1

a) C is employed as Plumber,However the training he/she is pursuing would not benefit to organisation- So this cannot be deductible as Educational expenses

b) E is employed as registered nurse.This can be deductible since its related to her employment

c) R educational fees are related to Profession which he is employed and can be deducted.

d) R law degree emphasizing Tax which looks related to the current role he is pursuing which can be deductible.

e) H travel cost during sabbatical leave from school cannot be deducted since school does not have benefit.