For purposes of education tax credits, transportation costs are not treated as qualified educational expenses. When it comes to work-related education that maintains or improves work skills but doesn’t qualify the taxpayer for a new trade or business, self-employed individuals may be able to treat travel costs as part of their deduction for education expenses. Nevertheless, college classes that qualify a student for a degree are generally considered to “qualify the taxpayer for a new trade or business” under current IRS rules and the costs for this are not deductible. In any case, employees (as opposed to those who are self-employed), cannot deduct any education costs through 2025.
Compensation for performing personal services. You must have earned income for a deductible IRA or to claim the earned income credit.