jorge09
New Member

What can I deduct for a business expense related to the cost for a new certification.

I am a pilot and had to pay to complete a certification required to get a job.  It is the airline transport pilot certificate.  My current job is as a pilot and this certificate is required to get other more lucrative positions.  Can I deduct this as an education or business expense?  What should I put it down as?
RebeccaC
New Member

Deductions & credits

You may be able to deduct these as job-related expenses. The expenses must be necessary and directly related to performing your job.

The first thing you should know about the Job-Related Expenses Deduction is that it is very difficult to qualify for this deduction. That's because the expense limit is so high. In order to qualify, your job-related expenses must be more than 2% of your AGI (adjusted gross income).

 The expenses must be required by your employer or necessary for you to do your job.

You can't deduct education expenses that are necessary to meet the minimum requirements for the job. So, if you are an administrative assistant and typing is a requirement for your job, you can't deduct the cost of taking a typing class.

To enter this in TurboTax, click on the Federal Taxes tab > Deductions & Credits > scroll down to Employment Expenses


Carl
Level 15

Deductions & credits

Provided the expense was a condition of employment or continued employment, it's deductible. If it was for promotion purposes in your same field, or another job in your same field, then it's not deductible.

Assuming it's deductible, you'll enter it under the Deductions & Credits tab in the Employment Expenses section. Under that heading elect to start/update Job Related Expenses.

Select YES and continue.
Select YES again, and continue.
Enter your occupation (Pilot I would presume) and continue.
Select the checkbox next to "You are in the transportation industry" and continue.
Select NO for home office expenses and continue.
Select NO for vehicle expenses.
Select NO you didn't buy any items for use on the job, and continue.
Select NO and continue.
For "Any other expenses?" leave it blank, and continue.
Enter something that best describes this specific certification that was required, followed by the amount you paid, then continue.
Select NO (assuming you were not reimbursed for this) and continue.
Select NO and continue.
Click DONE, and that does it.