Are CLE courses tax deductible?

Question

I understand that Continuing Legal Education courses (CLE's) are deductible, as are professional dues and unreimbursed travel expenses...as a business deduction.

However, could you use the Lifetime Learning Credit? And would you be better off doing so?

Answer 1

If you are a solo practitioner, they would be business expenses on your schedule C, not subject to the 2% floor. If you are in a partnership, get the partnership to pay, even if it reduces your draw and have the deduction specially allocated to you on your K-1. If you are an employee and you had to pay for the CLE, you will be subject to the 2% floor.

Answer 2

If the courses are given by an eligible institution, and are for an "academic period" like a semester or quarter, then you could probably take the lifetime learning credit for the tuition and fees. Courses that are a couple days or a week or two long would not be eligible.

In any case, as long as they are for maintaining or improving your skills in your current line of work, not to qualify you for a new line of work, you could probably take the items you mention as an unreimbursed employee business deduction if you itemize.

If some particular expense is eligible for either, the Lifetime Learning Credit would probably be more beneficial to you than the itemized deduction.

Answer 3

As a business deduction, you'd only get the amount in excess of 2% of your AGI. So let's say with your wages and interest, your AGI is 80,000. You'd only get to deduct that in excess of $4,000, so it's not really a great deal. Oh wait, that's on a schedule A. If you are selfemployed and using a schedule C, then you can deduct it without the 2% floor.

This is true for your CLEs, dues and travel.

The lifetime learning credit if or classes taken at a college/university, not for CLE courses.

From irs.gov:
For purposes of the Lifetime Learning Credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution.

An eligible educational institution is an college, university, vocational school, or other post-secondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited, public, nonprofit, and proprietary (privately owned profit-making) post-secondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

Answer 4

that is a good question I hope you'll get some reasonable answers