Solved
Tax Optimization - education credit or biz expense
Sole proprietorship. Paid 11k total education costs, included in that is 7K for a graduate degree program. The program does not prepare him for a new career, so I think it is a qualified deduction on C. The 1098T shows an amount of tuition. Is it required to use it for the credit? I ran the return both ways and calculated lower tax when all costs are deducted on C.
Instructions to 8863 don't address my question directly:
If you or the student takes a deduction for higher education expenses, such as on Schedule C (Form 1040), you cannot use those same expenses in your qualified education expenses when figuring your education credits.
