Education Expenses

Accounting Services For Small Businesses – Ordinary and necessary expenses paid for the cost of the education and training of a taxpayer’s employees are generally deductible. A taxpayer can also deduct the cost of his or her own education (including certain related travel) related to his or her trade or business. The taxpayer must be able to show the education maintains or improves skills required in his or her trade or business, or that it is required by law or regulations, for keeping his or her license to practice, status, or job.

For example, an attorney can deduct the cost of attending Continuing Legal Education (CLE) classes that are required by the state bar association to maintain his or her license to practice law. Education expenses incurred to meet the minimum requirements of a present trade or business, or those that qualify the taxpayer for a new trade or business, are not deductible. This is true even if the education maintains or improves skills presently required in the taxpayer’s business.

Need More Information?

ABA Tax Accounting

 Amare Berhie, Enrolled Agent

Licensed by the IRS

amare@abataxaccounting.com

651-300-4777

 

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