Discussion Question 9-8 (LO. 5, 10)

Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree.

a. Based on the reasons for the taking courses listed below, identify for Jamie whether the associated costs are "Deductible" or "Nondeductible".

It is to maintain or improve existing skills required in her present job.
It is to meet the minimum educational standards for qualification in her existing job.
It is to qualify her for a new trade or business.
It is to meet the express requirements of her employer or the requirements imposed by law to retain her employment status.

b. Complete the statement below outlining the limitations imposed on the deduction.

Assume that Jamie is a single filer with an MAGI of $64,000.

Click here to view 222 Deduction Amounts.

deductible for AGI and deducted from AGI as an itemized deduction which subject to the 2%-of-AGI limitation.