Self-employed persons and employees report their educational expenses differently.
The following information explains what forms you must use to deduct your qualified educational expenses.
Self-Employed Persons
If you are self-employed, you must report your qualified educational expenses on the appropriate form used to report your business income and expenses (Schedule C, C-EZ, or F). If your educational expenses include expenses for a car or truck, travel, or meals, report them the same way you report other business expenses for those items. See the instructions for the form you file for information on how to complete it.
Employees
If you are an employee, you can deduct qualified educational expenses only if they were not reimbursed by your employer or if they exceeded your reimbursement. (Amounts your employer paid under a nonaccountable plan and included in box 1 of your Form W-2 are not considered reimbursements.) How you treat any reimbursement you receive depends on the type of reimbursement arrangement and the amount of the reimbursement. For information on how to report your reimbursement, see chapter 28.
Include your qualified educational expenses with your deduction for any other employee business expenses on line 20 of Schedule A (Form 1040). (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later.) This deduction is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions.
Form 2106 or 2106-EZ.
To figure your deduction for employee business expenses, including qualified educational expenses, you generally must complete Form 2106 or Form 2106-EZ.
Form not required.
Do not complete either Form 2106 or Form 2106-EZ if:
- You were not reimbursed for any of your expenses, and
- You are not claiming travel, transportation, or meal expenses.
If you meet both of these requirements, enter the expenses directly on line 20 of Schedule A (Form 1040). (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later.)
Using Form 2106-EZ.
This form is shorter and easier to use than Form 2106. You can use this form if:
- You were not reimbursed for any of your expenses, and
- You are using the standard mileage rate if you are claiming vehicle expenses.
If you do not meet both of these requirements, use Form 2106.
Performing artists and fee-basis officials.
If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct your qualified educational expenses as an adjustment to gross income rather than as an itemized deduction.
For more information on qualified performing artists and fee-basis officials, see chapter 28.
Impairment-related work expenses.
If you are disabled and have impairment-related work expenses that enable you to get qualifying education, you can deduct them on line 27 of Schedule A (Form 1040). They are not subject to the 2%-of-adjusted-gross-income limit.
For more information on impairment-related work expenses, see chapter 28.
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