Complete Question:
Janet is currently employed at an accounting firm. During the year (2021), she spent $2,500 on a CPA review course and began working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course). Assuming no reimbursement, how much of these expenses can Janet deduct?
Answer:
Janet
Assuming no reimbursement by the accounting firm, Janet can deduct:
= $6,700
Explanation:
a) Data and Calculations:
Amount spent on CPA review course = $2,500
Law school expenses:
Tuition = $4,200
Books = $450
Total expenses by Janet = $7,150
Books not required for enrollment = $450
Qualified deductible expenses = $6,700
b) Therefore, Janet cannot deduct the whole $7,150 expenses that she incurred during the year. But she can deduct up to $6,700. The expense for the books is not qualified because the books are not required for her enrollment or attendance at the law school.
