During the year, she spent $2,500 on 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

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?

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.