Question:   How do I claim an educational expense on my return?

Answer:   You may be able to deduct qualified work-related education expenses as an itemized deduction.

• If you are an employee,

-The deduction is treated as a miscellaneous deduction on Form 1040, Schedule A (PDF), Itemized Deductions;
-The deduction is subject to the 2 percent of AGI floor; and
-You need to complete Form 2106 (PDF), Employee Business Expenses, or Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, or
Form 8917, Tuition and Fees Deduction.

• If you are a self-employed individual, in addition to completing Form 2106 (PDF), Employee Business Expenses, or Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, or Form 8917, Tuition and Fees Deduction, you claim the deduction on one of the following forms:

- Form 1040 Schedule C (PDF), Profit or Loss From Business.
- Form 1040, Schedule C-EZ (PDF) Net Profit From Business.
- Form 1040, Schedule F (PDF) Profit or Loss From Farming.

• Alternatives to educational expense deductions, such as the Lifetime Learning Credit and the American Opportunity Tax Credit, as discussed in Publication 970, Tax Benefits for Education, Chapters 2 and 3, should also be considered. You need to complete Form 8863 to claim these credits.