Generally, you cannot deduct education and training expenses for yourself, your spouse (if married) or your dependent as a business expense unless the education or training:

• Maintains or improves a skill required in a trade or business you are currently engaged in,
• Meets the express requirements of your employer, or
• Meets the requirements of law or regulations which are conditions of continuing your employment.

You may be able to deduct qualified education tuition and related expenses that you pay. You do not have to itemize to take this deduction. For tax year 2007, you can claim your education expenses either as an adjustment to income or as a Hope or Lifetime learning credit. Qualified expenses are the same as for the Hope and Lifetime learning credit. Refer to Publication 970, Tax Benefits for Education.

You cannot deduct higher education expenses on your income tax return and also claim a Lifetime learning credit based on those SAME expenses. Nor can you claim both the Hope and Lifetime learning credit in the same year for the same expenses.

The Tuition and Fees Tax Deduction can reduce taxable income by as much as $4,000 in 2007. This deduction is taken as an adjustment to income, which means you can claim this deduction even if they do not itemize deductions on Schedule A of Form 1040. This deduction may benefit taxpayers who do not qualify for either the Hope or Lifetime Learning Education Tax Credits.

Up to $4,000 may be deducted from tuition and fees required for enrollment or attendance at an eligible postsecondary institution. Personal living and family expenses, including room and board, insurance, medical and transportation, are not deductible expenses.

The exact amount of the Tuition and Fees Tax Deduction depends on the amount of qualified tuition and related expenses paid for one's self, spouse, or dependent for whom the taxpayer can claim an exemption.

The amount of qualified education expenses that can be deducted through the Tuition and Fees Deduction remained level for the 2007 tax year at $4,000 for taxpayers with a Modified Adjusted Gross Income (MAGI) of $65,000 or less ($130,000 or less for married couples filing jointly). The maximum Tuition and Fees Deduction is $2,000 for taxpayers with a MAGI greater than $65,000 ($130,000 for married couples filing jointly), but not greater than $80,000 ($160,000 for married couples filing jointly). Taxpayers with a MAGI greater than $80,000 ($160,000 for married couples filing jointly) are not eligible for this deduction.