NukeWorker Forum

Career Path => Money Matters => Tax Q&A => Topic started by: grantime on Feb 11, 2009, 05:53

Title: deductions for training
Post by: grantime on Feb 11, 2009, 05:53
During 2008 I had expenses related to taking the CHP test.  I went to a prep class (tuition and expenses) and paid for test(cost and travel expenses).  Is this a deductable business expense? 

Title: Re: deductions for training
Post by: Motown homey on Feb 11, 2009, 06:44
Have you changed jobs because of it,; or received more money in your current job?  If so it is a definite deuction.  It could also be a allowable deduction if the certification puts you in a position to change jobs or make more because of it.  I think that it is an allowable deduction because there is a case to be made that you are now in a position to be promoted to a more lucrative position (even if you never accept such a position).
Title: Re: deductions for training
Post by: grantime on Feb 11, 2009, 08:35
I haven't changed jobs yet but....there is always hope

Title: Re: deductions for training
Post by: Already Gone on Feb 11, 2009, 10:11
Regardless of whether you pass the test, or whether becoming a CHP can get you a promotion or a higher paying job, the course is deductible as long as the training is related to your work and will make you more proficient in your work.

It is NOT deductible if the course will qualify you for a different line of work OR if it is required as a condition of your current job.

I know that last part doesn't make a lot of sense, so I'll try to explain the rationale behind it.

If you go to college to become a dentist, and then get a job as a dentist - even though you were not a dentist before taking the schooling - dental college is not deductible.  If your buddy the dentist hires you to be a dentist - but you haven't gone to dental college - and he requires that you complete dental college in order to keep your job as a dentist and start treating patients, then dental college is not deductible.  If you are a dental hygienist, and you go to dental college, SOME of the courses would be deductible to the extent that they make you a better hygienest, but those which go beyond that level would not be.  The line between those would be a little blurry.  This part of the regulations is intended to prevent people for taking jobs they are not qualified for (in name and title but not in practice) just so they can deduct the required education for that job as work related.  Otherwise every college student would be able to deduct all tuition for every course they take as long as they eventually get a job after they graduate.  So, basically any education that would be considered as the essential education to qualify for a job - even if you already have that job - is not deductible.  Any education that increases your proficiency in a field that you already work in is deductible.

So, in your case, if you just got a job as an RPM, and they require you to pass the CHP exam in order to keep the job, then the training is not deductible.  But, if you took the course in order to improve your knowledge in the job you have and to become more proficient at it, (which would of course lead to possioble promotions or better jobs) then you can deduct the cost of the course.