Getting the Most for Your Money
We all know that the cost of an education is not cheap, and we would all love to find a way to save money. I thought I would share with you one woman’s courageous battle to win against the IRS and have her educational expenses deducted from her tax statements. Since the process is quite complex I will try help you understand just how Lori Singleton-Clarke was able to deduct around $15,000 in M.B.A. degree expenses.
The IRS states that in order to deduct educational expenses, you may only write it off if:
1. You are maintaining or improving skills above the minimum level required for your trade.
2. The additional improvement cannot lead to a new license or a new line of work.
This means that most undergraduate and graduate programs are excluded from being eligible deductions. These deductions have been designed to assist doctors, accountants, and even writers, further their professional level of education.
Lori Singleton-Clarke, a nurse who earned her M.B.A. online, was successful in her suit because an M.B.A. degree does not lead to a new license. This victory against the IRS gives hope to students pursuing an M.B.A., and several other advanced degrees. In order to qualify for deductions, an M.B.A. candidate will have to benefit from the degree in their current career, and the candidate’s employer cannot require the new degree in order to remain employed. Since Lori’s circumstances met all of these criteria, she won her lawsuit.
If a nurse pursuing an M.B.A. succeeded in writing off her educational expenses, there is hope for other students pursuing this degree and others! Read the full story on how a “Nurse Outduels IRS Over M.B.A. Tuition”!
Good luck in furthering your degree,
T-Foley
