Is the cost to obtain a professional certification that is beneficial to have in my role tax-deductible? Is the renewal of a certification tax-deductible?
The answer depends on whether you are an employee or an independent contractor.
If you are an independent contractor and the expense is necessary to the business, then the cost may be deducted on your Schedule C.
If you are an employee, it’s important to know whether the expense is a requirement for the position. If so, it is reported on Form 2106, and the unreimbursed expenses must exceed 2 percent of adjusted gross income. (FYI, this employee deduction on Form 2106 will no longer be available in 2018 due to changes in tax law.)
So, if you are an employee, the answer to your question is maybe. As long as the unreimbursed expenses, less any employer reimbursements, are greater than 2 percent of adjusted gross income, the expenses may be deducted.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Scott Rubinsky, CPA, is a sole practitioner in Huntingdon Valley, Pa.