Before you know it, summer will be over and another school year will be under way. In our last special report, we focused on deducting your child's education costs. But what if you are the one going back to school or enhancing your learning in conferences or seminars? As long as you make the tax grade, you can deduct the work-related education cost as a business expense. But it's easy to flunk out when you file your return. Read on to learn the rules.
Two-test deduction rule
Tax law says you can generally deduct education costs as a business expense if you pass either of these two tests:
1. The education is required by your employer or by law to keep your current job.
2. The education maintains or improves skills needed in your present work.
On the other hand, you can't deduct your expenses—even if you qualify under either one of the two tests—if the education is needed to meet the minimum educational...(register to read more)