Question

Under the right circumstances, a taxpayer's meals and lodging expense can qualify as a deductible education expense.

A) True
B) False

Answer 1

Under the right circumstances, the IRS allows the deduction of meals and lodging expenses as educational expenses if necessary to maintain or improve employment-related skills. However, they must be incurred while the taxpayer is away from home overnight, and must be reasonable, not lavish.

Correct option is true.

Step-by-step explanation:

Answering the question whether under the right circumstances, a taxpayer's meals and lodging expense can qualify as a deductible education expense, the correct response would be True.

The IRS does allow for the deduction of education-related expenses if they are necessary for the taxpayer to maintain or improve skills related to their employment.

However, to deduct meals and lodging expenses, the education must require the taxpayer to be away from home overnight, and the expenses must be reasonable and not lavish.

It should be noted that expenses for education that qualifies an individual for a new trade or business, or that are taken to meet the minimal educational requirements of the current trade or business, are not deductible.

Let's clarify the deductible education expenses further with an example.

If a self-employed graphic designer travels to a conference to learn new software relevant to their work, and the travel requires an overnight stay, the cost of the hotel and meals during the stay may be deductible.

The meals would generally be subject to a limitation, typically 50% of the cost.

Remember, to claim these deductions, the taxpayer should keep detailed records, including receipts and a log of how each expense relates to professional development.

Correct option is true.

Answer 2

The statement that, under the right circumstances, a taxpayer's meals and lodging can qualify as a deductible education expense is true. However, specific IRS guidelines determine the eligibility of such deductions.

Step-by-step explanation:

Under the right circumstances, a taxpayer's meals and lodging expenses can qualify as a deductible education expense. The answer to this statement is true. For example, if the education is required by the employer or the law to keep one's present job, maintains or improves skills needed in one's present work, or is for a qualified student and related to teaching, business, research, or a profession, then expenses such as meals and lodging might be deductible. However, if the education is to meet the minimum educational requirements of one's present trade or business or is part of a program that will qualify the taxpayer for a new trade or business, the expenses are not deductible. It's important to consult the IRS guidelines or a tax professional for specific cases and proper documentation.