Business Deduction for Work Related Education

In the ever-changing world of employment, keeping current on skills and education is paramount to retaining your current job, or getting a new one.  For taxpayers who itemize their deductions, there may be some tax benefits for work related education expenses.  This benefit can be used for employees as well as those who are self-employed.

You may deduct work related education expenses as a business expense if the expenses meet one of two requirements.  The first requirement is the education must be required by your employer, or there must be an industry-type rule in place that requires you to get the education in order to keep your job, salary, or status (such as a license).  If your employer requires it, the education must serve as a bona fide business purpose for your employer.  In the alternative, the education must be something that helps you maintain or improve your skills needed to do your present job.

Note though, if the education is something you have to take in order to meet the minimum education requirements of your profession or trade or business then it is not deductible.  In addition, education that qualifies you for a new trade or business is also not deductible.  But the cost of a course may still be deductible even if it might lead to a new degree.  For example, if you took a course at a college to refresh your teaching skills in a particular area, the fact that the course leads to a teaching degree does not disqualify the tuition expense from being deductible because your intent in taking the course is to maintain your skills.

If you have recently incurred educational expenses and want to know your tax options, then schedule your free consultation by calling (480) 888-7111 or submit a web request here.