How to Qualify For A Deduction Under Work Related Education

By Chuck | February 10, 2016
Posted in: Misc

Chances are, if you are reading this blog you are either a tax preparer who has taken continuing Gradeducation courses, a tax preparer who has just completed their tax education, or a tax student. Either way, it’s tax time, and the question you are likely wondering is whether your tax education is deductible.

While tax education would not be deductible under the standard education credits, it might be deductible as a work related education expense. That is, if you itemize. Here’s what the IRS has to say about Work Related Education expenses.

Deducting Work-Related Educational Expenses at a Glance

(excerpt taken from IRS.gov)

Your work-related educational expenses must be for education that:

  • maintains or improves your job skills; OR
  • is required by your employer or by law to keep your salary, status or job.

The education cannot

  • be part of a program that will qualify you for a new trade or business; or
  • be needed to meet the minimal educational requirements of your trade or business.

 

This means that, as a tax preparer, continuing education (both required by the IRS and as a means to maintain or improve your job skills), qualifies as a work related education expense. For courses offered by The Income Tax School this would include the following:

If you are a tax student, your education expenses would not qualify as a work related education expense because it qualified you for “a new trade or business”. However, if you started your own business as a tax preparer once your education was completed, you would be able to deduct the cost of the course or courses you have taken through The Income Tax School as a business expense on your business tax return (Schedule C, CE-EZ, Form 1120, 1120-S or 1065).

If you are in a complementary industry (CPA, financial planner) and wish to take a tax course like The Comprehensive Course, the deduction applies because you are improving upon your job skills.  

 

For more Information on deducting education expenses, check out the IRS website here:

Topic 513 – Educational Expenses

 

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