Work-related Educational ExpensesUnder certain circumstances, expenses for education that is work-related can be deducted from your income taxes. This is true whether or not you work for someone else or are self-employed. There are certain minimum guidelines that must be met in order for the educational expenses to qualify for a deduction.
- Your employer or the law requires you to take the course in order to maintain your license, job or salary level and it serves a real business purpose.
- The education is required in order to improve, or at least maintain, the skills required for your job.
- All tuition and fees, plus books and supplies, that are required for the course
- Some travel costs
- Costs of paying someone to type a paper, lab fees and other research related costs
Miscellaneous Fees, Subscriptions and Other ExpensesMany miscellaneous expenses qualify as tax deductions if you are not reimbursed by your employer. The expenses must be considered “ordinary and necessary” and be directly related to your business or your employment. Examples of ordinary and necessary expenses include:
- Subscriptions to trade journals and other professional magazines
- Membership fees in certain organizations related to your job
- State or federal licensing fees
- Premiums for malpractice insurance
- Passport fees for a required business trip
- Dues for belonging to a union or membership in a professional society
Tax Credit for Small Business EmployersIf you are the owner of a business and pay half or more of the health insurance premium for your employees, you may qualify for a tax credit if you meet the following qualifications:
- You have fewer than 25 full-time equivalent (FTE) employees
- The average salary earned by your employees is less than $50,000