Ask a CPA

For mortgage interest payments of $600 or more, banks and other lending institutions will mail you Form 1098 listing your mortgage interest payments and also any deductible points. This amount is deductible on IRS Schedule A.

Yes. The penalty you paid for pre-payment of your mortgage is deductible as mortgage interest on IRS Schedule A.

You are permitted to roll your money over into an IRA, 401(k) or 403(b) when you retire or change jobs. This portability gives you more options and control over your money.

Regardless of your age, you are not subject to the 10% early withdrawal penalty on 457 plan contributions and earnings. However, the penalty may apply to non-457 plan assets that are rolled into your 457 plan and subsequently withdrawn prior to age 59½.

A 457 Plan is a nonqualified salary reduction retirement plan that is available to government workers, including municipalities. There is no tax on the money you save through this plan or on what it earns until you take the money out. The catch is you can't take any money until you leave your job.

When you leave your job, you have basically three options: You can take all the money and pay tax on the money without penalty; If you are under 70 1/2, you can take installments on the money; or if you are under 70 1/2 you can leave the money in the plan. To determine which choice is suitable for your situation, please contact a CPA in your area.

The costs are deductible if they: enhance the skills required in your current position is not a minimum job requirement; or do not qualify you for a new business career. The courses must be related to your current job responsibilities.

Generally, the cost of ordinary and necessary expenses paid for employee education and training are deductible.
Business owners can deduct costs of education to maintain and improve skills required in their trade or business.
If you are self-employed you will claim the deduction on Schedule C.
If you are an employee you will claim the deduction on Schedule A as a miscellaneous expense subject to the 2% limitation.

No. The costs of courses preparing you for a new job or profession are not deductible. Law school or Law Review course costs are not deductible because they are leading to a new profession.

The costs of courses preparing you for a new job or profession are not deductible.