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Tax Deductions
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Executive MBA deduction

Hi everyone-

I am a physician and my accountant says I already fall under AMT. I want to do an executive MBA which will cost a lot of money and was hoping to deduct it. I know that it is deductible, but it seems like the AMT will prevent me from getting any benefit of deducting it.

I asked my work to do salary deduction, and they said they would, however I would eventually get some tax form saying I received the tuition as a taxable benefit and would be required to pay the tax anyways.

Can someone suggest a workable solution if one exists?


Zip Code: 07652

Re: Executive MBA deduction

Sorry for the delay in getting back to you. The first few weeks in April are brutal every year for us tax accountants.

You're in a tough situation with this one. The AMT will limit a deduction like this. Perhaps you live in a state that allows itemized deductions, in which case you'll save a little bit in taxes by claiming this Executive MBA as a Miscellaneous Itemized Deduction.

And I assume your income is too high for the Lifetime Learning Credit or the Tuition Deduction. Both of these education tax breaks are allowable for graduate level tuition, but phase-out at a modest level of income.

Otherwise, I don't see where else on your return you can take a deduction like this, and I don't see how the practice can pay your tuition with pre-tax dollars.

I wish I had a better answer for you. Let us know if you learn of any ways to use your tuition to save some federal income taxes.

Zip Code: 01801