Matthew, a single taxpayer with adjusted gross income of $90,000, works as a computer programmer for the Novak Corporation. The corporation reimburses all its employees 50% of tuition, fees and books for courses taken at the local university. Matthew incurs $6,000, is reimbursed $3,000, and can deduct the remaining $3,000 of the education expense
?
I.As a deduction for adjusted gross income.
II.Only if the course is required by state law to continue in his current job.

Question

Quizplus · Accepted Answer

Education expenses that are reimbursed by an employer are not deductible by the employee. Since Matthew is reimbursed for 50% of his expenses, the reimbursed portion is not deductible. The remaining $3,000 cannot be deducted as an adjustment to income because personal education expenses are not deductible in this manner, regardless of whether the course is required by state law or not. The Tax Cuts and Jobs Act of 2017 suspended many miscellaneous itemized deductions, including unreimbursed employee expenses, through 2025.

Matthew, a Single Taxpayer with Adjusted Gross Income of $90,000