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Level 2
February 1, 2020
Question

Can I claim continuing education required by state as self employed business expenses? If so, under what category on s-e turbotax?

  • February 1, 2020
  • 3 replies
  • 19 views
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    3 replies

    ColeenD3
    Level 15
    February 1, 2020

    You will have to create the Education category under Miscellaneous.

     

    Qualifying Work-Related Education

     

    You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

    • The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
    • The education maintains or improves skills needed in your present work.

    However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:

    • Is needed to meet the minimum educational requirements of your present trade or business, or
    • Is part of a program of study that will qualify you for a new trade or business.

     

    You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree.

    Paula17Author
    Level 2
    February 2, 2020

    thank you! Does the state profession regulations requirements counts as "required by law?". I nee receive 20 cont education credits to maintain my license. 

    if yes under what expenses? Misc?  

    Level 7
    February 2, 2020

    Yes, per IRS Publication 970, if maintaining your license is a requirement of your job, then you can deduct as a business expense the cost of continuing education courses required by the state. 

     

    As ColeenD3 stated above you can deduct education as a business expense if the following requirements are met:

     

    • The education is required by your employer or the law to keep your job
    • The required education must serve a business purpose
    • The education maintains or improves skills needed in your present job 
    • It is not considered qualifying work-related education if
      • it is needed to meet the minimum educational requirements of your present job
      • it qualifies you for a new trade or business

     

    You can enter your continuing education expenses by adding the "Other miscellaneous expenses" category to your self-employment expenses. Please see the steps below:

     

    1. Log into TurboTax and click on any topic to continue
    2. Click on Federal from the menu on the left-hand side 
    3. Click on Income & Expenses and then click Edit/Add next to Self-employment income and expenses
    4. Click on Edit by your self-employment business and then click on Add Expenses for this work
    5. Click on the button next to Other miscellaneous expenses and then click Continue
    6. Enter "Continuing Education" in the Description section and enter the amount
    7. Click Continue