turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

slave1fan
New Member

My wife works both at a spa and independently. She had a license renewal fee and CE classes to pay for. Do those go as expenses against her personal or W2 deductions?

 
1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

My wife works both at a spa and independently. She had a license renewal fee and CE classes to pay for. Do those go as expenses against her personal or W2 deductions?

They get divided proportionately.  Since her licencing and her CE are required for both facets (self-employment as well as through employer), it needs to get divided between the two.  For this purpose, you may use her gross income to determine the amount that may be deducted against her self-employment.  For instance, if she earned 30,000 through the spa and 10,000 of gross self-employment income before any expenses are subtracted out, she may claim 25% of the expenses towards her self-employment income.  The remaining expenses go toward her unreimbursed employee expenses.  (Which are subject to 2% of AGI and the itemized deduction threshold).  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
DanielV01
Expert Alumni

My wife works both at a spa and independently. She had a license renewal fee and CE classes to pay for. Do those go as expenses against her personal or W2 deductions?

They get divided proportionately.  Since her licencing and her CE are required for both facets (self-employment as well as through employer), it needs to get divided between the two.  For this purpose, you may use her gross income to determine the amount that may be deducted against her self-employment.  For instance, if she earned 30,000 through the spa and 10,000 of gross self-employment income before any expenses are subtracted out, she may claim 25% of the expenses towards her self-employment income.  The remaining expenses go toward her unreimbursed employee expenses.  (Which are subject to 2% of AGI and the itemized deduction threshold).  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v