Higher Education Deductions

A married couple, a college professor and a librarian, failed to persuade the Tax Court that their deductions for home internet service, cell phones, satellite television, and other items were deductible. The court rejected their argument that these expenses were necessary for the pursuit of "general knowledge" (Tanzi, TC Memo 2016-148). In another recent Tax Court decision, however, the court allowed a finance and accounting professional to deduct amounts he paid for an Executive Master of Business Administration (EMBA) program (A. Kopaigora, TC Summary Opinion 2016-35). He showed that his courses improved his managerial and leadership skills, which were appropriate and helpful in his position as a business manager.