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Re: Education deduction - overseas MBA

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Newbie

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Replies 3

Hi, 

 

I left my role in Sydney in late June 2019 to study an MBA in the US. 

 

The MBA program runs from August 2019 to May 2021. 

 

1. Will I able to claim a tax deduction on my 2019/2020 return? I will have non-employement income during this period. 

 

2. If the total cost of the program is greater than my income in 2019/2020, will I be able to deduct the cost of the program from subsequent tax years (i.e. 2020/2021, 2021/2022, 2022/2023)?

Thank you

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Best answer

Taxicorn

Replies 2

@stocks 

 

No, as there is no related employment income.

 

If you have no income, then there is no benefit as deductions reduce the taxable income they do not refund your out of pocket expenses.

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Best answer

Taxicorn

Replies 2

@stocks 

 

No, as there is no related employment income.

 

If you have no income, then there is no benefit as deductions reduce the taxable income they do not refund your out of pocket expenses.

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Newbie

Replies 1

Got it, thanks @macfanboy 

 

To confirm - to claim a tax deduction, the expense has to be related to that income source? 

I will have income (from property) during the period, but none from employment. 

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Taxicorn

Replies 0

@stocks 

 

To confirm - to claim a tax deduction, the expense has to be related to that income source? 

 

Yes, that is essentially what a tax deduction is.