my company reimbursed me for education(non taxable). on resignation, I had to pay them back. can I deduct this

Question

my company reimbursed me for education which was non taxable. on resignation, I had to pay them back some the money. since the repayment was from after tax money, I am wondering if i can claim a deduction for this?

Answer 1

You might want to talk to a CPA (NOT H&R Block) about this, or call the IRS and ask them.

Answer 2

you can deduct the costs of qualifying work-related education as long as it meets at least one of the following two tests:

1. the education is required by your employer or the law to keep your present salary, status or job.

2. the education maintains or improves skills needed in your present job.

however, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

1. is needed to meet the minimum educational requirements of your present trade or business, or

2. is part of a program of study that will qualify you for a new trade or business.

you would only be able to deduct the portion not reimbursed by your employer. also, this is only deductible if you itemize deductions on schedule a. it is also subject to 2% of your AGI.