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Is MBA tuition deductible?

February 3, 2012: 10:00 AM ET

I'm pursuing my MBA while I work. My company does not reimburse me. Can I deduct the tuition? — A.A., Atlanta

If you're hoping to write off your education as an unreimbursed business expense, tread very carefully. It's been allowed, but it's risky. A safer bet is to take advantage of an education tax break: the tuition and fees deduction ($4,000 max) or the $2,000 lifetime learning credit. (The $2,500 American opportunity credit can't be used for a graduate degree.) Income limitations apply. A credit is generally more valuable than a deduction since it directly reduces your taxes; a deduction lowers the income that's taxed.

Posted in: Family Money, Taxes
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