Can you deduct the cost of an MBA degree?

Maybe. If you are already in business, and go back to school to get an MBA that is related to what you are already doing, then you should be able to deduct the costs. Also your company can't require you to get the MBA to keep your job. The IRS doesn't like this deduction one bit and will argue it qualifies you for a new business or profession. You will have to be able to refute that with the facts and circumstances of your situation. If you immediately leave your company upon graduation, and take a new job in a different industry, that will hurt your case. The MBA has to maintain or improve your skills used in your current job. An employee would take the deduction as a miscellaneous itemized deduction subject to the 2% of adjusted gross income threshold.