Can we deduct the cost of courses and exams for my wife to become licensed in Occupational Therapy?

[davisareynolds]

We spent ~ $800 on the exam and exam prep from the NBCOT (National Board for Certification in Occupational Therapy).

[Bsch4477]

No. Those costs are not deductible. 

[MindyB · Accepted solution]

No, you cannot deduct those expenses on your tax return.

According to IRS Publication 970, you cannot deduct education expenses (including exams and prep courses) if they are part of a program of study that will qualify you for a new trade or business.

Even if your wife has a degree in a related field, the IRS views the exam as the "minimum educational requirement" to become a licensed Occupational Therapist. Because she cannot practice as a licensed OT without passing the exam, the cost of getting it is considered a personal expense, and it is not deductible.