# Going Back to School



## Longstreet (Dec 27, 2010)

I will be leaving my current job in the public service and plan on going back to school. My plan is to enrol in an Executive MBA program that runs from August 2013 to May 2015, which permits me to work while going to school. My tuition will be $16250 in 2013, $32500 in 2014, and $16250 in 2015. My current salary is approximately $80K-$90K (gross). While I'm going to school, I'm assuming my salary will remain comparable to my current one and that I will likely be in the highest tax bracket within a couple years of graduation. I am also married and my wife will be a stay-at-home mom to our first child being born later this year. 

I am seeking advice, comments, and a sober second thought to my assumptions and plans and their tax implications. I plan on claiming the maximum amount for tuition and textbook credits in the years that I accrue them. However, since I believe tuition payments are tax deductible and can be deferred to later years, I plan on waiting until I am in the highest tax bracket to claim my tuition payments. 

Any assistance would be appreciated. Thanks.


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## MoneyGal (Apr 24, 2009)

You can do it. Lots of people on this board (including me) have done similar things. You don't need a sober second thought if, by that, you mean a "reality check" which tells you that you can't do it. You can, although it may be (quite) difficult. Being flexible and adaptable will really help you. 

Couple of quick points: tuition fees are not deductible, they give rise to a tax credit, and they must be used to the maximum extent possible against earned income (i.e., you may not defer claiming a tuition tax credit until a later year/it is more advantageous to you personally). 

Secondly: in case this is useful, ordinarily you would only be able to claim childcare expenses (fully deductible) against the lower-income-earning spouse's income and in your case, there'd be no income against which to make the claim. However, because you will be in school, this means you can actually claim some childcare expenses against your income. See Part C of Form 778, the childcare expense deduction form. In case you/your spouse want/need some paid childcare during period you are in school, you can likely deduct some/all of the costs against your income.


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## Four Pillars (Apr 5, 2009)

You are very brave doing this with a kid coming soon. I honestly don't know how you will be able to do it.


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## Longstreet (Dec 27, 2010)

MoneyGal said:


> You can do it. Lots of people on this board (including me) have done similar things. You don't need a sober second thought if, by that, you mean a "reality check" which tells you that you can't do it. You can, although it may be (quite) difficult. Being flexible and adaptable will really help you.
> 
> Couple of quick points: tuition fees are not deductible, they give rise to a tax credit, and they must be used to the maximum extent possible against earned income (i.e., you may not defer claiming a tuition tax credit until a later year/it is more advantageous to you personally).
> 
> Secondly: in case this is useful, ordinarily you would only be able to claim childcare expenses (fully deductible) against the lower-income-earning spouse's income and in your case, there'd be no income against which to make the claim. However, because you will be in school, this means you can actually claim some childcare expenses against your income. See Part C of Form 778, the childcare expense deduction form. In case you/your spouse want/need some paid childcare during period you are in school, you can likely deduct some/all of the costs against your income.


Moneygal, many thanks for your input. I was unaware that tuition was not tax deductible. 

Four Pillars, I am a compulsive planner and my wife and I have been planning for my MBA and especially for kids for several years. We have some money saved up. Plus, I don't spend a lot of money on leisure and eating out. For us, education and kids come first. Pontification ends. Sorry.


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## Pennypincher (Dec 3, 2012)

Just curious, you said you plan on leaving your job in the public sector - but you are going to keep working while doing the Exec MBA program? Have you already got another job elsewhere, or are you leaving the public sector after you have completed the MBA?

How long is your wife planning on staying home with kids? For quite a few years? 

I don't think there is any detriment do completing an MBA if you are working at the same time. Yes it's tough but lots of people do it. I have a friend who did her Queen's 1 year MBA while at home on maternity leave with her first child and she subsequently set up a business and had three more kids all at the same time.


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## Longstreet (Dec 27, 2010)

Penny Pincher, the plan is that I will be the sole income earner for a long time. Having her stay at home with our kids is our number one priority. I'll leave the public service this August and move down to Calgary while pursuing the EMBA. With some of my credentials and by speaking with people in industry, I don't think I'll have many problems finding a job in oil and gas.


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## Four Pillars (Apr 5, 2009)

Longstreet said:


> Four Pillars, I am a compulsive planner and my wife and I have been planning for my MBA and especially for kids for several years. We have some money saved up. *Plus, I don't spend a lot of money on leisure and eating out*. For us, education and kids come first. Pontification ends. Sorry.


I wasn't referring to the money - I was talking the logistics of working full time, doing an MBA and look after a newborn. I'm sure you will learn a lot about time management and lack of sleep.


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## Mall Guy (Sep 14, 2011)

Longstreet said:


> Penny Pincher, the plan is that I will be the sole income earner for a long time. Having her stay at home with our kids is our number one priority. I'll leave the public service this August and move down to Calgary while pursuing the EMBA. With some of my credentials and by speaking with people in industry, I don't think I'll have many problems finding a job in oil and gas.


As for me, Class of 2010 . . . in my class a number of us (me included) traveled anywhere from 2 to 4.5 hrs every second weekend for class. We would arrive the night before for a study group session, class on Friday and Saturday, back home Saturday night . . . and then started the homework cycle (20 hrs per week). Some had young families, but everyone made it work. 

Moving down to Calgary, implies your wife staying behind, or both moving (any family support network in Calgary?). As well, the oil and gas folks can be a fickle bunch at times . . . one minute hiring the next laying off . . . and August is a long way off in that world. 

I point this out only to say, are you sure you need to quit your public service job ? One of my classmates worked for the Feds, and they were paying part of the cost, and allowing time off to attend the Friday session . . . make sure you explore the options . . . will new position in Calgary be a contract position, perhaps without benefits ?


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## Longstreet (Dec 27, 2010)

Thanks all of for comments. 

In response, I am very sure that I want to leave my public service job. The union-like atmosphere, commitment to doing as little as possible, and systemic lack of accountability is utterly intolerable. I can see why most people yearn for federal benefits, but it is not worth my sanity. Also, if I work hard and succeed in my chosen career path, I can earn a living and fund a retirement that is way better than a gold plated government pension. Although the oil and gas industry is cyclical, good people are always in demand, not that I think I'm a superhero. Plus, I can always go back to my old job if things turn south or use my engineering degree.

I am not afraid of hard work and I cannot continue with my current employment. The 'safe route' of the mediocrity of my federal job is not sustainable. I sincerely thank you for the advice, but the decision has been made. My apologies for my 'axe to grind' comments.


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## supperfly17 (Apr 18, 2012)

Longstreet said:


> Thanks all of for comments.
> 
> In response, I am very sure that I want to leave my public service job. The union-like atmosphere, commitment to doing as little as possible, and systemic lack of accountability is utterly intolerable. I can see why most people yearn for federal benefits, but it is not worth my sanity. Also, if I work hard and succeed in my chosen career path, I can earn a living and fund a retirement that is way better than a gold plated government pension. Although the oil and gas industry is cyclical, good people are always in demand, not that I think I'm a superhero. Plus, I can always go back to my old job if things turn south or use my engineering degree.
> 
> I am not afraid of hard work and I cannot continue with my current employment. The 'safe route' of the mediocrity of my federal job is not sustainable. I sincerely thank you for the advice, but the decision has been made. My apologies for my 'axe to grind' comments.


Good luck in school. I wish you all the best. I am curious as to how old you are?


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## SpIcEz (Jan 8, 2013)

Longstreet said:


> Thanks all of for comments.
> 
> In response, I am very sure that I want to leave my public service job. The union-like atmosphere, commitment to doing as little as possible, and systemic lack of accountability is utterly intolerable. I can see why most people yearn for federal benefits, but it is not worth my sanity. Also, if I work hard and succeed in my chosen career path, I can earn a living and fund a retirement that is way better than a gold plated government pension. Although the oil and gas industry is cyclical, good people are always in demand, not that I think I'm a superhero. Plus, I can always go back to my old job if things turn south or use my engineering degree.
> 
> I am not afraid of hard work and I cannot continue with my current employment. The 'safe route' of the mediocrity of my federal job is not sustainable. I sincerely thank you for the advice, but the decision has been made. My apologies for my 'axe to grind' comments.


This is the exact sentiment I often see from people leaving the public sector early in their life.

I have known people with good jobs at place like Hydro-Quebec, leave to work elsewhere with a 10-15k pay cut (to start back at the bottom of the chain), because they are slowly loosing their sanity working in an environment where "work" is like asbestos and no one will get close to it with a 10 foot pole.

People go to work every morning, looking for ways NOT to work.

Its mind boggling how they can then turn around and ask for more and go on strike every few years. I would keep my head down and STFU.


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## none (Jan 15, 2013)

I appreciate how the OP made sure to say it was her/his department. The vast majority of federal employees I know work tremendously hard and on par or higher than those I know in private industry.


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## Longstreet (Dec 27, 2010)

In response to a post, I joined the service when I was 18 and I am 28 now. I love the job, but the bureaucracy and sense of entitlement are killing my soul. I believe I will have few problems adjusting to civilian life, pursuing the EMBA, and managing the family. I love working and going home knowing that I have accomplished something personally and professionally. Hard work does not scare me one bit. 

SpIcEz - I couldn't agree with you more.


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## Ihatetaxes (May 5, 2010)

Sincere props for your plan and as someone who quit a very secure six figure job to start my own business when my wife was 5 months pregnant I say GO FOR IT!!! Best move I ever made. Maybe you are like me as the pending birth of my child made me evaluate where I was headed in life.


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## Pennypincher (Dec 3, 2012)

Longstreet said:


> or use my engineering degree.


Cha Ching! An engineering degree will get you somewhere in Oil and Gas. It can be hard to get in, initially, as most companies are looking for previous oil and gas experience. Why not get into a company and work for a year or so and build up a good rapport, and then pursue the EMBA and have the company pay for it? That is what everyone around me seems to be doing. I know many MBA/P.Eng's or CFA/P.Eng's in Calgary.


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