Professional Certifications: Proof of Expertise & A Tax Deduction

What Makes a Certification Tax-Deductible?

The two main criteria that professional certifications need to meet to qualify as tax deductions are if the training is relevant to your current career and if the education is required by law or by your employer. Additional education to maintain your current skill set or to expand your capabilities at your current job, the certification may be tax-deductible! If you are required by law or employer to complete additional training in order to maintain your current job or salary, then the training also may be tax-deductible. These often take place in the form of conferences, seminars, and classes. Other deductions can include tuition fees, supplies, books, and any expenses applied to research and supplies to complete training.

However, if the certification or training is intended to help you receive a new job title or move into a new career, even if it is required by law or your employer, then the it does not quality as a tax deduction. Additional expenses, such as any personal expenses, cannot be included. If the employer pays for the training or certification programs, then the employee also cannot claim the training as a tax deduction.

This benefit is not limited to employees of established companies, but also can extend to self-employed individuals. Whether you operate your own business or provide services as a contract worker, you as the sole employer and employee have to invest in your own certifications, hence why these may qualify as tax deductions.

Contact Our Certified Public Accountant to Learn More!

Arcara Lenda Eusanio & Stacey, CPAs serves Buffalo, Amherst, and Orchard Park, NY, providing accounting services for businesses and individuals. Having an accountant to refer to for tax advice can help you as an employee and business owner find tax deductions where you might not expect to check, including certifications. If you've completed training recently that you think may qualify as a tax deduction, contact our small business and certified public accountants today to learn more and ask any additional questions.