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

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

TrueAnita
New Member

Deduct expenses related to training costs for a new career? 1st payment made 4Q 2015, but training starts later in 2016, before I might be laid off from my current job.

Basic question: Can I deduct a certification course payment for a course that doesn't start until Apr. 2016, and if so, how? Could I deduct this initial registration fee as some kind of education expense?  
I am very likely to be laid off from my job of 10 years in the next few months. I realized this likelihood last year, and decided to retrain in a different field.  In Nov. 2015, I signed up for a certification course and made my first payment toward the remaining cost of the course.  The total cost of the course will be paid via monthly payments in 2016.
Other details that may be important: The course itself starts in April and goes through Jan., 2017.  It is not through a college or university, but the course and certification are required for the job I will do.  I will most likely only start to be able to earn money with this new job in late 2016 or early 2017.
Thank you for any advice or insight!
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Tiki
New Member

Deduct expenses related to training costs for a new career? 1st payment made 4Q 2015, but training starts later in 2016, before I might be laid off from my current job.

No, the IRS only allows deductions for certification programs in the field that you are currently in, if it is required to remain in the field. You cannot deduct certification expenses when changing career fields. 

Per the IRS:

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

  • The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.

  • The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it isn't qualifying work-related education if it:

  • Is needed to meet the minimum educational requirements of your present trade or business, or

  • Is part of a program of study that will qualify you for a new trade or business.

You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree.

For more information, see the IRS publication below. 

https://www.irs.gov/publications/p970/ch12.html

https://ttlc.intuit.com/replies/3302271

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies