rockycjc
New Member

Education

The answer is....it depends.  There are two tests you need to apply: First test: The expense maintains or improves skills that are required in your employment or your current trade or business. Treas. Reg. § 1.162-5(a)(1). Examples include negotiation seminars for a salesperson, employment law or employee benefit seminars for HR managers, and finance courses for bookkeepers. Second test: The expense meets the express requirements of your employer or of applicable law or regulations, imposed as a condition to the retention of your employment, status, or rate of pay. Treas. Reg. § 1.162-5(a)(2).

I am not an accountant or a tax lawyer so my advice can be taken with a grain of salt but this is what I read. Ultimately, it comes down to whether or not the IRS will question the legitimacy of what you are deducting.  You could ultimately claim that any educational expense is necessary to obtain or retain employment so if you can explain the relationship between the training and the job or even better have something in writing from the employer explaining it, then you should be golden.