This publication discusses work-related educational expenses that you may be able to deduct as business expenses. It also discusses the exclusion from income of employer-provided educational assistance benefits.

To be able to deduct work-related educational expenses, you must:

1. Be working,
2. Itemize your deductions on Schedule A (Form 1040) if you are an employee, and
3. Have expenses for education that meets the requirements discussed under Qualifying Education.

Educational expenses that are not work related, such as the costs of sending your children to college, are personal expenses that you cannot deduct. However, you may be eligible for a deduction of interest you pay on a qualified student loan, and for other tax benefits explained in Publication 970, Tax Benefits for Higher Education.

Some work-related educational expenses may also be qualifying expenses for a Hope or lifetime learning credit. You may want to figure your taxes using the expenses as deductions, and again using the expenses as the basis for a Hope or lifetime learning credit. You can then choose the method that gives you the lower tax liability. See Publication 970 for information on the Hope and lifetime learning credits.

Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

You can e-mail us while visiting our web site at www.irs.gov/help/email2.html.

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Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

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