I wo for mortgage broker only W2 income. How can I deduct my own licensing.

Pam 2020 · ‎February 3, 2023

Can I deduct my licensing costs against that income or do I have to open a schedule C and post no income and a loss?

fanfare · ‎February 3, 2023

you may get away with it but if you repeatedly file Schedule C with no income,

you will be audited by IRS.

@Pam 2020

JohnB5677 · ‎February 5, 2023

If you are a W-2 employee, it is not deductible against your job.

If you file a Schedule C you will have to be able to prove that you had a "Profit Motive".

"If your business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. If the IRS classifies your business as a hobby, you'll have to prove that you had a valid profit motive if you want to claim those deductions."