Suggestions Of Possible Educational Credit
1. Lifetime Learning Credit (LLC)
- Eligibility: The LLC applies to tuition and fees paid for courses at eligible educational institutions.
- Key Requirement: The institution must be accredited, and the courses must lead to a degree, credential, or improve job skills.
- Why It Likely Doesn't Qualify: Noncredit continuing education programs usually don’t count, especially if you’re not enrolled as a student of the institution. However, you can confirm with the University of Delaware whether they are an eligible institution under IRS rules.
2. Work-Related Education Deduction
If the program is directly related to your current job or profession, you may be able to deduct it as a work-related education expense.
Requirements:
The course maintains or improves skills needed for your current job, or
The course is required by your employer or law to keep your current salary or job.
Limitation: These expenses must be itemized as part of unreimbursed employee expenses, which are no longer deductible for most taxpayers due to changes from the 2017 Tax Cuts and Jobs Act (TCJA).
3. Business Expense Deduction (If Self-Employed)
If you are self-employed and the program is directly related to your business or helps you maintain/improve your skills, you may be able to deduct the cost as a business expense on Schedule C.
4. Non-Deductible Personal Expenses
If the course is unrelated to your current job or is taken for personal reasons (e.g., a career change), the IRS considers it a personal expense, which is not deductible.
Steps to Confirm or Maximize Benefits
Check Eligibility of Institution: Contact the University of Delaware to see if they qualify as an eligible institution under IRS rules.
Evaluate Purpose of Education: Is the program directly related to your current job or career?
Track Related Expenses: If you’re self-employed, ensure you track all costs associated with the program, as they may be deductible.