Students can receive tax deductions for online degree programs

Students can receive tax deductions for online degree programs

Students and working adults who are worried that they may not be able to afford tuition at a campus-based or online university may be eligible to receive tax deductions while they study.

A recent lawsuit against the Internal Revenue Service could make higher education more accessible to prospective students, as it clarified the agency's rules for claiming deductions for tuition, the Wall Street Journal reports.

Lori Singleton-Clarke, a nurse who enrolled in an MBA program at the University of Phoenix, recently received a $15,000 deduction on her taxes after a grueling auditing process and an appearance in tax court, according to the media outlet.

She told the news source that she chose to pursue a degree because she "didn't want to feel outmatched by surgeons who didn't want to talk to [her]" and felt she deserved the deduction, as gaining an education was intended to boost her career.


Working professionals who wish to enhance their qualifications may consider taking online courses that can save them money while increasing their earning potential, as the Princeton Review reports that MBA holders typically make 35 percent more than those without the degree.