Grace is a single medical student at State University, a qualified educational institution.This year Grace paid university tuition of $12,000. Grace works part-time at the University library, and this year she reports $15,000 of salary and no other items of income or expense. Which of the following is a true statement?
A) Grace can deduct all of her tuition for AGI as a business expense.
B) Grace can only deduct half of her tuition for AGI as a business expense.
C) Grace can deduct all of her tuition as a miscellaneous itemized deduction.
D) Grace can only deduct half of her tuition as a miscellaneous itemized deduction.
E) All of the choices are false.

Question

Quizplus · Accepted Answer

None of the choices are true. Grace cannot deduct her tuition as a business expense because it is not a necessary expense for her job at the library. She also cannot deduct it as a miscellaneous itemized deduction because the deduction for miscellaneous itemized deductions, which includes job-related education expenses, was suspended under the Tax Cuts and Jobs Act of 2017.

Grace Is a Single Medical Student at State University, a Qualified