Deduct executive graduate degree tuition in NY State?

Forum|Forum|2 years ago
January 31, 2024
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I'm working full-time and doing a full-time executive graduate degree on the side. I have Form 1098-T which shows my tuition but on a federal level I can't use it for an education tax break because my income exceeds the limit.

However, in my NY STATE return itemized deductions (Form IT-196) I see line 22 "job related education expenses" which includes tuition according to the instructions. The education improves my job skills in my opinion, which is another criterion. Given I am itemizing either way can I claim this?

Thanks!

AmyC

Employee

It sounds like a yes but let's double check. The rules are simple as seen for Job related education expenses in itemized deductions:

You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests:

It maintains or improves skills required in your present work.
It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.

You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education is:

needed to meet the minimum educational requirements to qualify you in your trade or business, or
part of a program of study that will lead to qualifying you in a new trade or business.

If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, similar items, and certain transportation costs.

If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business.

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