J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

33.14 Types of Deductible Work-Related Costs

If you improve your job or professional skills by attending continuing education or refresher classes, advanced academic courses, or vocational training, you may be able to treat your expenses as a business expense deduction. As a self-employed business owner or professional, allowable expenses are deductible on Schedule C and reduce income subject to self-employment tax (45.1) as well as income tax liability. However, as an employee, the tax benefit of an unreimbursed educational expense deduction is limited because the expenses are miscellaneous itemized deductions, which, together with any other miscellaneous expenses, are deductible on Schedule A only to the extent that the total exceeds 2% of your adjusted gross income; see 19.1.

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Filing Tip

Deducting Unreimbursed Employee Educational Costs

Unreimbursed employee education costs, such as for travel, tuition, books, fees, and meals, are deductible only if you claim itemized deductions. You generally must report your expenses on Form 2106 or in some cases Form 2106-EZ (19.3) before entering the deductible amount on Line 21 of Schedule A, where they and other miscellaneous itemized deductions are subject to the 2% AGI floor.

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Keep in mind that tuition and fees (but not transportation and usually not books or supplies) for work-related educational ...