I am preparing my daughter's income tax. She was let go from the company in 2024 and decided to get a certificate for a specific skill. Can the expenses that she paid for this training be used for her LLC, or can it be used as deduction?
No. Expenses incurred to start a new career are not deductible as a business expense nor as a deduction.
If she attended a Eligible Educational Institution, then she would possibly be able to claim the Lifetime Learning Credit. Otherwise, this is not an expense that she will see a tax benefit from.
If the LLC is for her Truck Driving, then when she renews, it would be able to be deducted as a business expense.
I have a follow-up question (from my daughter).
When she was laid-off, she worked as employee of a trucking company (she is not looking for a new career). Her CDL is to expand her skillset. If this is the scenario, can the tuition be used for deduction?
From the reply -"If the LLC is for her Truck Driving, then when she renews, it would be able to be deducted as a business expense." I have a follow-up question:
the statement "When she renews" is that means she will renew her certificate when it is expired and that expenses can be deducted (even as employee) -am I understand it correctly?
Not as an employee. Job-Related expenses are not deductible in tax years 2018-2025. She could deduct those expenses as a self-employed taxpayer on a business tax return. It is not deductible from W-2 income, but it would be deductible from self-employment/LLC income.