topic Required training as part of being an independent contractor in Deductions & credits

Required training as part of being an independent contractor

ladybugs89 — Mon, 29 Mar 2021 02:44:03 GMT

I am an independent contractor and in order to get a contract to work, I have to attend training to get a certification to work. I am not paid for my training time and the training course usually last 3 to 4 weeks for approximately 4 hours a day. That is time I cannot work and generate income. Is there a way to deduct this as a business expense? Also, I'm charged a fee every pay cycle for using their platform to work. Where would I deduct this expense?

Re: Required training as part of being an independent contractor

Bsch4477 — Mon, 29 Mar 2021 02:55:26 GMT

You can’t deduct anything for your time but out of pocket expenses could be deducted as licensing fees or continuing education.

Re: Required training as part of being an independent contractor

KrisD15 — Mon, 29 Mar 2021 02:58:54 GMT

The fee would be an expense. You can use "Subscriptions" for the category.

Your time can't be expensed, but you can claim the mileage if you travel to the training site.

Re: Required training as part of being an independent contractor

Opus 17 — Mon, 29 Mar 2021 03:11:15 GMT

This needs clarification.

1. You can never deduct anything for "lost time". That just means you earned less money, and your tax reduction is that since you earned less money, you pay less tax.

2. You can't deduct any expense needed to meet the minimum qualification for your job, including training fees, courses, travel and lodging if the training is out of town, etc.

3. Once you meet the minimum standards for your job or field of work, you can deduct periodic or recurring or ongoing training needed to maintain or improve your qualifications.

4. You can deduct, as a business expense, anything that is an ordinary and necessary expense of your job, and that includes a subscription to a service or software that is part of your job.