If you are working and taking work-related courses, you may be able to deduct all or part of the cost of your courses as a business expense deduction. This chapter discusses:

• What courses qualify and what courses do not qualify,
• What expenses for qualifying education can be deducted, and
• How to claim the deduction using Schedule A (Form 1040) and Form 2106 or 2106-EZ if you are an employee.

Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct as business expenses. However, you may be eligible for other tax benefits. Information on the new education tax credits is in chapter 36, on the education IRA and making withdrawals from IRAs for education expenses in chapter 18, and on cancellation of student loans in chapter 13. Information on student loan interest is in Publication 970, Tax Benefits for Higher Education.

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