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January 24, 2023
Question

Education Tax Credit for noncredit professional courses

  • January 24, 2023
  • 1 reply
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Hi there,

 

Can we claim the education tax credit from IRS for noncredit professional courses that we took from an eligible institute with or without employer assistance?

 

Thanks 

1 reply

January 24, 2023

It depends. Qualified educational expenses do not include expenses that relate to any course of or other educational that involves sports, games, or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student’s degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. You may qualify for the Lifetime learning credit.

 

For more information

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January 24, 2023

Hi there,

 

Yes, these noncredit professional courses are taken to improve the jobs skills which were assisted by the employer. 

 

Follow up question,

 

To claim the credit of these, what documents or forms will be used? for example 1099 etc....

 

To claim the credit of these, do we need itemized deductions or standard deduction would suffice? 

 

Thanks 

January 25, 2023

So here's my question to you. Did you get a Form 1098T from a college or an institution for the amount of money you paid towards these courses? This credit is called the American Opportunity credit and is a refundable credit up to 40% of the amount after the full tax liability is wiped out upto a maximum of 1,000. It shows up on Line 39 on the 1040 pg. 2. All this information should be  entered under Deductions/Credits / Education in the Turbotax software and the program will calculate the optimum benefit.

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