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Nurse wins right to deduct the cost of her MBA

Many employees seek additional education in order to remain competitive, or to enhance their opportunities for growth within their field.  If required for work, the IRS considers the cost of such education to be tax deductible.  The rules regarding whether or not the additional education is required are sometimes unclear.  Today, I want to share with you an article out of the Wall Street Journal, written by Laura Sanders.  This article details how one woman took on the IRS and won the right to deduct her MBA tuition.

by Laura Saunders
Monday, January 11, 2010

How One Woman Went to Tax Court and Won Deduction
A Maryland nurse accomplished two rare feats in her battle with the Internal Revenue Service: She defended herself against the agency's lawyers and won, and she got a ruling that could help tens of thousands of students deduct the cost of an M.B.A. degree on their taxes.

The U.S. Tax Court handed Lori Singleton-Clarke her victory last month, saying the 47-year-old Bryantown, Md., woman had properly deducted nearly $15,000 in business school tuition. The Tax Court ruling should make it easier for many other professionals to deduct the expense of a Master in Business Administration degree.

After getting word of the court decision, "I nearly yelled the roof off the house," Ms. Singleton-Clarke says. "I still can hardly believe it."

The IRS's rules on deducting work-related tuition are complicated and onerous, ultimately preventing most students from deducting their tuition. But this case clarifies the rules and will likely lead to more taxpayers taking the deduction, tax experts say.  read more here...

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