If I paid $400 to renew my nursing license as well as renewing my ACLS and BLS certifications, can I claim that on my taxes?

[Bsch4477]

Not if you are an employee. 

[rjs · Accepted solution]

If you are an employee (you get a W-2) you cannot claim a deduction for your licensing and certification expenses on your federal tax return. There is no federal tax deduction for employee business expenses.

A few states allow a deduction for employee business expenses, even though federal tax does not allow it. I believe the states that allow a deduction are Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania. If you are in a state that allows the deduction, enter the job-related expenses in the federal section of TurboTax. The expenses will flow to the state tax return, subject to any limitations that the state might impose.

If you are self-employed (you get a 1099-NEC or no tax form) and report your self-employment income as business income on Schedule C you can deduct the licensing and certification expenses as business expenses. You enter the expenses when you enter your business income in the federal section of TurboTax, and it will flow to the state tax return as well, for any state.