Imagine missing tax savings between $10,000 and $35,000. That is almost a third of the total costs of most programs. Having worked with many MBAs over the years, we can assist you. Current tax law provides for deductions above and beyond the lifetime learning credit which limits your tax benefits to $2,000 per year and has lower income phase out provisions.

To qualify for these tax savings you must meet the following requirements:

• You are employed (temporary leave from a job while in school is allowed) or self employed
• You already meet the minimum requirements for your profession or business (e.g. JD for an attorney, masters of accountancy for a CPA)
• The education maintains or improve skills or your employer or law requires the education to keep your current salary of position
• The education does not qualify you for a new trade or business (a change in duties does not constitute a change in trade or business as long as it involves the same general type of work). Examples:
  • A marketing professional works in the marketing department of a different company post MBA
  • A finance professional is promoted to Vice President/CFO post MBA and the MBA was not a requirement for the promotion
  • A general manager in an advertising company takes a new job as CEO of a small internet start up post MBA

The IRS has challenged the deductibility of MBA Costs with mixed results, but each situation has to be evaluated based on the facts and circumstances. Contact Us to assist in making that evaluation.

The value of your deduction will depend on the actual amount of expenses (tuition, fees, supplies, transportation, computer, etc.) and your marginal tax rate current range is (10%-39.6%). But generally, the higher the expenses and marginal tax rates, the greater the savings. See example here.

Don't miss these significant when the tax law entitles you to them. If you did not take advantage of this deduction last year, we can amend your returns so that you realize these benefits today! Our rates are competitive and reasonable. Contact Us and/or set up your account here! Once your account is set up, upload your documents, complete a brief questionnaire, and we handle the rest!