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

Answer:   As an employee, you may be able to deduct qualified work-related education expenses as an itemized deduction.

• These are treated as miscellaneous deductions on Form 1040 Schedule A (PDF), Itemized Deductions and are subject to the 2 percent of AGI floor.
• You would complete Form 2106 (PDF), Employee Business Expenses, or Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, when job-related educational expenses are involved. 
•  Alternatives to educational expense deductions should also be considered, such as the Lifetime Learning Credit, and the Hope Scholarship Credit, as discussed in Publication 970, Tax Benefits for Education, Chapters 2 and 3. 

Self-employed individuals include educational expenses as deductions 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.

The tuition and fees deduction may be claimed on Form 1040.

The education credits may be claimed for Form 8863.