Deductibility of Expenses for Studying Abroad

Abstract

In this paper we examine the tax treatment of study abroad expenses for students who engage in study abroad activities. Study abroad trips run the gamut from seven day excursions, to full semester trips, and even multiple year, multiple country trips.  The type of study abroad trip is important as the tax consequences of certain expenses depend on the type of trip, the duration of the visit, and the role of the participants involved.  Educational study abroad expenses may be incurred in either a personal or a business capacity, resulting in very different tax treatments.