is IT certification courses educational expenses?


A

aloobaloo55

can i claim tax for IT courses such as Oracle Certified Professional 11g(OCP) from oracle university? I took the LVC format which is live virtualonline class. also took like tons of exams required & bought books for preparation. Yes i am certified now. thanks
 
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R

removeps-groups

can i claim tax for IT courses such as Oracle Certified Professional 11g(OCP)
from oracle university? I took the LVC format which is live virtualonline
class. also took like tons of exams required & bought books for preparation.
Yes i am certified now. thanks
I don't think the lifetime learning credit (20% of expenses up to $2000 provided your income is low enough) or the tuition and fees deduction (deduct $2000 or $4000 if your income is low enough) are allowed here because this is not an accredited institution.

BEGIN QUOTE http://www.irs.gov/publications/p970/ch03.html#en_US_2012_publink1000178168

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

END QUOTE

However, if you work at several companies as a contractor and are paid on a 1099-MISC, and these courses are related to your work, then your tuition and books are deductible in full on Schedule C.

If you are an employee of another company (like a contracting company), and these courses are related to your work, then your tuition and books are deductible with limitations on Schedule A. The limitations are that you can only deduct the amount above 2% of your AGI, and if you are in AMT then you get no deduction at all. Remember that you deduct not just your unreimbursed employee expenses (such as the tuition and books) but also other employee expenses such as driving from your place to work to another place of work, and also tax preparation fees, safe deposit box fees, custodial fees, union dues, etc. Look up miscellaneous deductions.
 
A

Alan

I don't think the lifetime learning credit (20% of expenses up to $2000 provided your income is low enough) or the tuition and fees deduction (deduct $2000 or $4000 if your income is low enough) are allowed here because this is not an accredited institution.

BEGIN QUOTE http://www.irs.gov/publications/p970/ch03.html#en_US_2012_publink1000178168

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

END QUOTE

However, if you work at several companies as a contractor and are paid on a 1099-MISC, and these courses are related to your work, then your tuition and books are deductible in full on Schedule C.

If you are an employee of another company (like a contracting company), and these courses are related to your work, then your tuition and books are deductible with limitations on Schedule A. The limitations are that you can only deduct the amount above 2% of your AGI, and if you are in AMT then you get no deduction at all. Remember that you deduct not just your unreimbursed employee expenses (such as the tuition and books) but also other employee expenses such as driving from your place to work to another place of work, and also tax preparation fees, safe deposit box fees, custodial fees, union dues, etc. Look up miscellaneous deductions.
But don't forget if the education is part of a program of study that
will qualify one for a new trade or business, it is not deductible.
 
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R

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But don't forget if the education is part of a program of study that
will qualify one for a new trade or business, it is not deductible.
True, that's why I said "and these courses are related to your work".
 

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