As every business person knows to keep in touch with your market and ahead of the competition you must always be continuing your education. With the skyrocketing tuition rates and the uncertain economic times qualifying for the education deduction can make or break your business. Don’t swallow those thousands of dollars for education expenses you can deduct!
One rule to qualify:
You can deduct your expenses needed to maintain or improve the skills needed for your business only if that education doesn’t qualify you to start a new business.
What does this mean? You qualify if you: are required by yourself an employer or by law to continue further with your education; the education cannot be entry-level hence further education; and you must already be in the business in which you are looking to expand your skills.
Skills that are seen as improvements by the IRS:
Some of the skills that you may need include: software skills business planning skills computer skills business tax-planning skills writing skills selling skills advertising skills negotiating skills computer skills etc.
You may also need to go back to college and receive a higher degree or certificate. For example if you are told to move up in the company you will need to get a masters degree then you can deduct those expenses. Another example can be that you must get a certificate to continue working for your current company you can deduct those expenses.
Some foreign language skills are also seen as deductible. However there must be a prior need for you to learn a foreign language and not simply your desire to be a better candidate for a job. You can deduct the costs of a tutor a class you are taking or the software you had to buy in order to learn the language.
Staying on top of your game is vital if you want to remain competitive in this tough job market. If you are always maintaining and improving upon your skills you will most likely never have to worry about not finding a job. If you qualify for the deductions take advantage of them!